Walt Disney (DIS) Stock Sinks As Market Gains: What You Should Know

Highs and Lows Stock Data

In the latest trading session, Walt Disney (DIS) closed at $110.08, marking a -0.74% move from the previous day. This change lagged the S&P 500's daily gain of 1.56%. At the same time, the Dow added 1.77%, and the tech-heavy Nasdaq gained 2.2%.

Prior to today's trading, shares of the entertainment company had gained 1.14% over the past month. This has lagged the Consumer Discretionary sector's gain of 8.66% and the S&P 500's gain of 6.41% in that time.

DIS will be looking to display strength as it nears its nex t earnings release, which is expected to be February 5, 2019. On that day, DIS is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 16.93%. Our most recent consensus estimate is calling for quarterly revenue of $15.18 billion, down 1.1% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $7.04 per share and revenue of $60.50 billion. These results would represent year-over-year changes of -0.56% and +1.8%, respectively.

Any recent changes to analyst estimates for DIS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. DIS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, DIS is currently trading at a Forward P/E ratio of 15.75. This valuation marks a premium compared to its industry's average Forward P/E of 11.29.

We can also see that DIS currently has a PEG ratio of 1.9. 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 industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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.

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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