Walt Disney (DIS) closed at $86.67 in the latest trading session, marking a -0.29% move from the prior day. This change was narrower than the S&P 500’s 1.45% loss on the day. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 5.88%.
Prior to today’s trading, shares of the entertainment company had lost 12.1% over the past month. This has lagged the Consumer Discretionary sector’s loss of 1.13% and the S&P 500’s loss of 1.68% in that time.
Investors will be hoping for strength from Walt Disney as it approaches its next earnings release. In that report, analysts expect Walt Disney to post earnings of $0.78 per share. This would mark a year-over-year decline of 26.42%. Meanwhile, our latest consensus estimate is calling for revenue of $23.2 billion, up 6.33% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.07 per share and revenue of $90.76 billion. These totals would mark changes of +15.3% and +9.72%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Walt Disney. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 4.78% lower. Walt Disney currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 21.34 right now. For comparison, its industry has an average Forward P/E of 21.05, which means Walt Disney is trading at a premium to the group.
Also, we should mention that DIS has a PEG ratio of 1.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Media Conglomerates industry currently had an average PEG ratio of 0.97 as of yesterday’s close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
To follow DIS in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the
Zacks Top 10 Stocks
portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
