Walt Disney Stock Suffers a Dip in Recent Trading Session

Walt Disney (NYSE:DIS), a household name in entertainment, experienced a decline in its stock price, closing the latest trading day at $112.08. This adjustment marked a slight decrease of -0.58% from the previous day’s closing figure. In contrast to Disney’s downturn, broader market indices saw positive movement; the S&P 500 went up by 0.32%, the Dow Jones Industrial Average increased by 0.38%, and the technology-centric Nasdaq Composite Index grew by 0.35%.

The Bigger Picture for Disney’s Stock

Over the past month, Disney shares have dropped by 7.87%, which was a larger loss than the Consumer Discretionary sector's decline of 6.24% and the S&P 500's decrease of 2%. Investors are now looking ahead to Disney’s upcoming financial report, scheduled for release on May 7, 2024. Most are focused on the projected earnings per share (EPS) of $1.09, which would mean a 17.2% rise over the same quarter from the prior year. Revenue expectations are set at approximately $22.11 billion, up 1.34% from the previous year's comparables.

For the full fiscal year, analysts are anticipating a higher note, with earnings estimates of $4.66 per share and revenue predictions of $91.57 billion. These figures suggest respective increases of 23.94% and 3.01% from last year’s earnings.

Analyst Predictions and Stock Ratings

Recent analyst estimate revisions for Walt Disney are important for investors to consider as they can indicate current business trends and potential stock performance. Positive revisions oftentimes signal analyst confidence in the company’s future profitability. In line with this, Disney has attained a Zacks Rank of #2 (Buy), based on these estimate changes, as well as the company’s forecasted performance.

In terms of valuation, Walt Disney’s forward price-to-earnings (P/E) ratio stands at 24.2, which is above the industry average of 16.76. Additionally, its price-to-earnings growth (PEG) ratio is pegged at 1.39, compared to the industry’s average of 1.74. The Media Conglomerates industry, of which Disney is a part, is ranked in the top 32% of all industries in the Zacks Industry Rank, highlighting its relative strength within the broader economic sector.

Disney, Stocks, Entertainment