In the latest trading session, Walt Disney (DIS) closed at $107.09, marking a +2.23% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.47% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
Coming into today, shares of the entertainment company had gained 0.55% in the past month. In that same time, the Consumer Discretionary sector lost 2.96%, while the S&P 500 gained 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. The company is expected to report EPS of $1.68, up 51.35% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $25.29 billion, indicating a 12.58% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.92 per share and a revenue of $101.63 billion, representing changes of +16.69% and +7.63%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Walt Disney. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. 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 14.03. This valuation marks a premium compared to its industry average Forward P/E of 13.48.
We can also see that DIS currently has a PEG ratio of 1.21. 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. As of the close of trade yesterday, the Media Conglomerates industry held an average PEG ratio of 1.21.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The Walt Disney Company (DIS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).