The Walt Disney Co. (DIS) could prove to be a solid bet for investors. Ever since the company posted better-than-expected first-quarter fiscal 2014 results (on Feb 5), the Estimate has been trending upward. For fiscal 2014, the Zacks Consensus Estimate moved up 2.5% to $4.03 and for fiscal 2015, it rose 1.5% to $4.59 over the last 30 days.
Further, since the earnings release, the stock has garnered a return of nearly 9.3%. Recently, the stock again hit a 52-week high of $81.59 on Feb 24. Additionally, the company’s long-term estimated earnings per share growth rate is 11.1%, which seems achievable.
Disney’s top and bottom lines both surpassed the Zacks Consensus Estimate while increasing 9% and 32% respectively, on a year-over-year basis. Results were driven by double-digit revenue growth across Studio Entertainment, Consumer Products as well as Interactive businesses.
Moreover, Walt Disney is one of the world's major diversified entertainment companies. Moreover, the company commands a formidable portfolio of globally recognized brands, which endows it with a strong competitive advantage and strengthens its well-established position in the market.
Disney, which carries a Zacks Rank #2 (Buy), also entered into several content distribution agreements with companies such as Comcast and Netflix, Inc. (NFLX) which enhance its multi-channel subscription model by increasing the number of platforms to deliver services.
We believe that barring the near-term headwinds, Disney remains well positioned to sustain its robust performance on the back of Parks and Resorts as well as the Studio and Media Networks divisions.
Currently, this worldwide media entertainment company trades at a forward P/E of 20.0x, a 4.9% premium to the peer group average of 19.07x. Average volume of shares traded over the last 3 months stands at approximately 7,296.9K.
Other than Disney, CBS Corporation (CBS) and Church & Dwight Co. Inc. (CHD) reached 52-week highs of $67.29 and $67.66 respectively, on Feb 24, 2014.
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment