Walt Disney (DIS) closed the most recent trading day at $111.35, moving -1.48% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 2.95%. Elsewhere, the Dow saw a downswing of 2.59%, while the tech-heavy Nasdaq depreciated by 3.56%.
The the stock of entertainment company has risen by 0.53% in the past month, lagging the Consumer Discretionary sector's gain of 4.56% and the S&P 500's gain of 3.15%.
Investors will be eagerly watching for the performance of Walt Disney in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.45, indicating a 18.85% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $24.7 billion, indicating a 4.87% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.41 per share and a revenue of $94.94 billion, indicating changes of +8.85% and +3.91%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Walt Disney. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.72% increase. Walt Disney is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Walt Disney is currently being traded at a Forward P/E ratio of 20.88. For comparison, its industry has an average Forward P/E of 20.86, which means Walt Disney is trading at a premium to the group.
Also, we should mention that DIS has a PEG ratio of 2.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Media Conglomerates stocks are, on average, holding a PEG ratio of 2.56 based on yesterday's closing prices.
The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.
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