Walt Disney (DIS) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Walt Disney (DIS) closed the latest trading day at $93.06, indicating a +0.92% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 1.7%.

The entertainment company's shares have seen an increase of 0.21% over the last month, surpassing the Consumer Discretionary sector's loss of 2.56% and falling behind the S&P 500's gain of 0.94%.

Market participants will be closely following the financial results of Walt Disney in its upcoming release. The company plans to announce its earnings on February 7, 2024. The company's earnings per share (EPS) are projected to be $1, reflecting a 1.01% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $23.48 billion, indicating a 0.14% decrease compared to the same quarter of the previous year.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $91.88 billion. These results would represent year-over-year changes of +16.49% and +3.35%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walt Disney. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. Walt Disney is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Walt Disney is presently being traded at a Forward P/E ratio of 21.07. This represents a premium compared to its industry's average Forward P/E of 15.27.

One should further note that DIS currently holds a PEG ratio of 1.7. 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. Media Conglomerates stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% of all 250+ industries.

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.

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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