Walt Disney (DIS) Stock Sinks As Market Gains: Here's Why

Walt Disney (DIS) ended the recent trading session at $111.85, demonstrating a -1.69% change from the preceding day's closing price. This change lagged the S&P 500's 0.19% gain on the day. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq lost 0.03%. Shares of the entertainment company have appreciated by 7.87% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 0.12%, and the S&P 500's gain of 0.54%.The upcoming earnings release of Walt Disney will be of great interest to investors. The company is forecasted to report an EPS of $1.57, showcasing a 10.8% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $26.04 billion, showing a 5.47% escalation compared to the year-ago quarter. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.6 per share and revenue of $101.2 billion. These totals would mark changes of +11.3% and +7.17%, respectively, from last year. Any recent changes to analyst estimates for Walt Disney should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.41% rise in the Zacks Consensus EPS estimate. At present, Walt Disney boasts a Zacks Rank of #3 (Hold). In the context of valuation, Walt Disney is at present trading with a Forward P/E ratio of 17.23. This signifies a discount in comparison to the average Forward P/E of 17.38 for its industry. We can additionally observe that DIS currently boasts a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Media Conglomerates industry had an average PEG ratio of 1.03 as trading concluded yesterday. The Media Conglomerates industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 179, placing it within the bottom 27% of over 250 industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks