Walt Disney (DIS) Sees Gains but Follows the Market: Key Insights

On the latest trading day, Walt Disney (DIS) closed at $112.56, reflecting a rise of +1.04% from its previous closing price. However, this gain was less than the S&P 500's increase of 1.1%. In comparison, the Dow Jones industrial average rose by 0.91%, and the tech-focused Nasdaq index gained 1.35%.

Over the past month, Disney's stock has experienced a decline of 3.97%, which is more significant than the Consumer Discretionary sector's drop of 0.95% and contrasts with the S&P 500's slight rise of 0.22% during the same period.

Investors and analysts will be particularly attentive to Walt Disney's upcoming earnings report. Analysts have projected an earnings per share (EPS) of $1.45 for this quarter, marking an 18.85% increase compared to the same quarter last year. Furthermore, the Zacks Consensus Estimate anticipates revenue of $24.7 billion, which indicates an increase of 4.87% year-over-year.

For the entire fiscal year, the Zacks Consensus Estimates suggest an EPS of $5.41 and revenue of $94.94 billion. These figures represent gains of +8.85% and +3.91%, respectively, compared to the prior year.

It's essential to note that recent adjustments in analyst estimates for Walt Disney signal changing trends in the company's short-term performance. Positive revisions indicate a hopeful outlook for Disney’s business trajectory.

Our findings suggest a direct correlation between these estimate revisions and short-term stock movements. To leverage this understanding, we have established the Zacks Rank, a unique evaluation system that takes into account these estimate adjustments.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record since 1988, with #1 rated stocks achieving an average annual return of +25%. In the last month, our consensus EPS projection for Disney has risen by 0.61%, placing Walt Disney at a Zacks Rank of #2 (Buy).

When examining its evaluation, Disney has a Forward P/E ratio of 20.58. This is consistent with the average Forward P/E in its industry, suggesting that Disney's valuations are in line with its competitors.

Additionally, DIS has a PEG ratio of 1.99. Similar to the P/E ratio, the PEG ratio also considers projected earnings growth. The average PEG ratio for companies in the Media Conglomerates sector currently stands at 2.5, indicating that Disney is priced attractively in comparison.

The Media Conglomerates industry belongs to the Consumer Discretionary sector, which ranks 53 in the Zacks Industry Rank, putting it in the top 22% among more than 250 industries.

The strength of various industry groups is assessed by the Zacks Industry Rank, based on the average Zacks Rank of the stocks within those groups. Historical data shows that the top half of rated industries perform twice as well as the bottom half.

Be sure to check various stock-influencing metrics and updates as Disney approaches its earnings report and future trading sessions.

Walt, Disney, Stocks