Walt Disney (DIS) ended the recent trading session at $97.15, demonstrating a +1.34% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.
Shares of the entertainment company witnessed a loss of 5.34% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 1.13%, and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Walt Disney in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.88, marking a 16.77% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.41 billion, up 7.44% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.86 per share and a revenue of $101.72 billion, signifying shifts of +15.68% and +7.73%, respectively, from the last year.
Investors should also pay attention to any latest changes in 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Currently, Walt Disney is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 13.98 right now. This expresses a discount compared to the average Forward P/E of 15.47 of its industry.
We can also see that DIS currently has a PEG ratio of 1.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Media Conglomerates industry stood at 0.6 at the close of the market yesterday.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons 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.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.
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The Walt Disney Company (DIS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).