In the latest trading session, Walt Disney (DIS) closed at $101.18, marking a +2.03% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 1.23%.
The stock of entertainment company has fallen by 0.12% in the past month, leading the Consumer Discretionary sector's loss of 0.69% and undershooting the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Walt Disney in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.49, signifying a 2.76% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $25.04 billion, reflecting a 6.01% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.61 per share and revenue of $100.96 billion, indicating changes of +11.47% and +6.92%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Walt Disney. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% lower. At present, Walt Disney boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Walt Disney is currently exchanging hands at a Forward P/E ratio of 15.01. Its industry sports an average Forward P/E of 20.97, so one might conclude that Walt Disney is trading at a discount comparatively.
We can also see that DIS currently has a PEG ratio of 1.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Media Conglomerates industry held an average PEG ratio of 0.95.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 21% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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).