In the latest trading session, Walt Disney (DIS) closed at $90.08, marking a -0.45% move from the previous day. This change was narrower than the S&P 500’s 1.11% loss on the day. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, added 0.1%.
Heading into today, shares of the entertainment company had lost 1.05% over the past month, outpacing the Consumer Discretionary sector’s loss of 3.58% and the S&P 500’s loss of 2.19% in that time.
Wall Street will be looking for positivity from Walt Disney as it approaches its next earnings report date. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $23.2 billion, up 6.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.07 per share and revenue of $90.76 billion, which would represent changes of +15.3% and +9.72%, respectively, from the prior year.
Any recent changes to analyst estimates for Walt Disney should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.78% lower. Walt Disney currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Walt Disney’s current valuation metrics, including its Forward P/E ratio of 22.22. For comparison, its industry has an average Forward P/E of 21.48, which means Walt Disney is trading at a premium to the group.
Also, we should mention that DIS has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Media Conglomerates industry currently had an average PEG ratio of 1.11 as of yesterday’s close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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