Walt Disney (DIS) Gains But Lags Market: What You Should Know

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Walt Disney (DIS) closed the most recent trading day at $171.18, moving +0.02% from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day.

Heading into today, shares of the entertainment company had lost 4.18% over the past month, lagging the Consumer Discretionary sector's loss of 2.25% and the S&P 500's gain of 1.34% in that time.

DIS will be looking to display strength as it nears its next earnings release, which is expected to be November 10, 2021. The company is expected to report EPS of $0.52, up 360% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.77 billion, up 27.61% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.01% lower. DIS is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DIS has a Forward P/E ratio of 33.57 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 33.57.

Meanwhile, DIS's PEG ratio is currently 1.57. 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 industry currently had an average PEG ratio of 1.6 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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