Walt Disney (DIS) closed at $123.31 in the latest trading session, marking a -0.6% move from the prior day. This change lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the entertainment company had lost 1.53% in the past month. In that same time, the Consumer Discretionary sector gained 0.66%, while the S&P 500 gained 3.25%.
Investors will be hoping for strength from DIS as it approaches its next earnings release, which is expected to be November 12, 2020. The company is expected to report EPS of -$0.62, down 157.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.34 billion, down 24.94% from the year-ago period.
It is also important to note the recent changes to analyst estimates for DIS. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.59% lower. DIS is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note DIS's current valuation metrics, including its Forward P/E ratio of 42.02. Its industry sports an average Forward P/E of 30.29, so we one might conclude that DIS is trading at a premium comparatively.
It is also worth noting that DIS currently has a PEG ratio of 6.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Media Conglomerates was holding an average PEG ratio of 6.28 at yesterday's closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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.