Disney (DIS) Surges 3.0%: Is This an Indication of Further Gains?
Walt Disney DIS shares rallied 3% in the last trading session to close at $103.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.1% loss over the past four weeks.
Disney shares are benefitting from strong box office anticipation for Toy Story 5, with the film poised to deliver a meaningful theatrical windfall as it opens this weekend.
This entertainment company is expected to post quarterly earnings of $1.89 per share in its upcoming report, which represents a year-over-year change of +17.4%. Revenues are expected to be $25.47 billion, up 7.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Disney, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DIS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Disney is a member of the Zacks Media Conglomerates industry. One other stock in the same industry, Tencent Music Entertainment Group Sponsored ADR TME, finished the last trading session 0.5% higher at $8.73. TME has returned -5% over the past month.
For Tencent Music Entertainment Group, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.24. This represents a change of +4.4% from what the company reported a year ago. Tencent Music Entertainment Group currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
