Walt Disney (DIS) Rises Higher Than Market: Key Facts

The latest trading session saw Walt Disney (DIS) ending at $116.46, denoting a +1.7% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.

Prior to today's trading, shares of the entertainment company had gained 4.63% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.82% and the S&P 500's gain of 3.56% in that time.

The investment community will be paying close attention to the earnings performance of Walt Disney in its upcoming release. On that day, Walt Disney is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 10.75%. Alongside, our most recent consensus estimate is anticipating revenue of $22.05 billion, indicating a 1.07% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.57 per share and revenue of $91.34 billion. These totals would mark changes of +21.54% and +2.75%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Walt Disney. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.23% fall in the Zacks Consensus EPS estimate. As of now, Walt Disney holds a Zacks Rank of #3 (Hold).

Digging into valuation, Walt Disney currently has a Forward P/E ratio of 25.05. This denotes a premium relative to the industry's average Forward P/E of 17.86.

Meanwhile, DIS's PEG ratio is currently 1.79. 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 industry had an average PEG ratio of 1.94 as trading concluded yesterday.

The Media Conglomerates industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 26% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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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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