Benzinga - by Zacks, Benzinga Contributor.
Walt Disney (NYSE: DIS) ended the recent trading session at $112.08, demonstrating a -0.58% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.35%.
The entertainment company's shares have seen a decrease of 7.87% over the last month, not keeping up with the Consumer Discretionary sector's loss of 6.24% and the S&P 500's loss of 2%.
Market participants will be closely following the financial results of Walt Disney in its upcoming release. The company plans to announce its earnings on May 7, 2024. The company's upcoming EPS is projected at $1.09, signifying a 17.2% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $22.11 billion, indicating a 1.34% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.66 per share and a revenue of $91.57 billion, indicating changes of +23.94% and +3.01%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Walt Disney. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. At present, Walt Disney boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Walt Disney is currently being traded at a Forward P/E ratio of 24.2. This represents a premium compared to its industry's average Forward P/E of 16.76.
One should further note that DIS currently holds a PEG ratio of 1.39. 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 1.74 as of yesterday's close.
The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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