In the latest trading session, Walt Disney (DIS) closed at $93.60, marking a -0.04% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Prior to today’s trading, shares of the entertainment company had lost 2.16% over the past month. This has was narrower than the Consumer Discretionary sector’s loss of 6.01% and lagged the S&P 500’s loss of 1% in that time.
Walt Disney will be looking to display strength as it nears its next earnings release, which is expected to be August 10, 2022. The company is expected to report EPS of $0.95, up 18.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.37 billion, up 25.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.96 per share and revenue of $84.84 billion, which would represent changes of +72.93% and +25.83%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Walt Disney. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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.
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 moved 1.02% lower. Walt Disney is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 23.68. For comparison, its industry has an average Forward P/E of 17.92, which means Walt Disney is trading at a premium to the group.
We can also see that DIS currently has a PEG ratio of 1.12. 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 1.3 based on yesterday’s closing prices.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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