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Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know

Walt Disney (DIS) closed at $130.22 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.27%.

Coming into today, shares of the entertainment company had gained 3.38% in the past month. In that same time, the Consumer Discretionary sector gained 2.98%, while the S&P 500 gained 0.6%.

DIS will be looking to display strength as it nears its next earnings release. In that report, analysts expect DIS to post earnings of -$0.53 per share. This would mark a year-over-year decline of 149.53%. Meanwhile, our latest consensus estimate is calling for revenue of $14.58 billion, down 23.65% from the prior-year quarter.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $1.68 per share and revenue of $65.41 billion. These results would represent year-over-year changes of -70.88% and -5.98%, respectively.

Investors should also note any recent changes to analyst estimates for DIS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.12% lower. DIS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, DIS is holding a Forward P/E ratio of 78.63. This valuation marks a premium compared to its industry's average Forward P/E of 48.14.

Also, we should mention that DIS has a PEG ratio of 11.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Media Conglomerates was holding an average PEG ratio of 11.74 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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