Walt Disney (DIS) Stock Declines While Market Improves: Some Information for Investors

Walt Disney (DIS) ended the recent trading session at $96.25, demonstrating a -2.41% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Heading into today, shares of the entertainment company had lost 4.1% over the past month, lagging the Consumer Discretionary sector's loss of 0.73% and the S&P 500's loss of 1.82%.

Analysts and investors alike will be keeping a close eye on the performance of Walt Disney in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.88, marking a 16.77% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $25.51 billion, up 7.87% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.85 per share and a revenue of $101.83 billion, indicating changes of +15.51% and +7.84%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Walt Disney. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Walt Disney is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Walt Disney has a Forward P/E ratio of 14.39 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.06.

We can also see that DIS currently has a PEG ratio of 1.24. 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 average PEG ratio for the Media Conglomerates industry stood at 0.63 at the close of the market yesterday.

The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 30% of all industries, numbering over 250.

Story Continues

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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