Walt Disney (DIS) closed the most recent trading day at $129.16, moving -0.3% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 1.79%. At the same time, the Dow lost 1.86%, and the tech-heavy Nasdaq lost 1.56%.
Prior to today’s trading, shares of the entertainment company had lost 4.96% over the past month. This has lagged the Consumer Discretionary sector’s loss of 0.95% and the S&P 500’s gain of 0.72% in that time.
Investors will be hoping for strength from DIS as it approaches its next earnings release, which is expected to be November 7, 2019. On that day, DIS is projected to report earnings of $0.97 per share, which would represent a year-over-year decline of 34.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.91 billion, up 32.16% from the year-ago period.
Any recent changes to analyst estimates for DIS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. DIS is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 20.87 right now. Its industry sports an average Forward P/E of 12.67, so we one might conclude that DIS is trading at a premium comparatively.
It is also worth noting that DIS currently has a PEG ratio of 4.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Media Conglomerates was holding an average PEG ratio of 2.47 at yesterday’s closing price.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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