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Walt Disney (DIS) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

In the latest trading session, Walt Disney (DIS) closed at $169.56, marking a -1.36% move from the previous day. This move lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.07%.

Wall Street will be looking for positivity from DIS as it approaches its next earnings report date. This is expected to be February 11, 2021. On that day, DIS is projected to report earnings of -$0.47 per share, which would represent a year-over-year decline of 130.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.64 billion, down 25.03% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $69.06 billion. These results would represent year-over-year changes of -31.68% and +5.68%, respectively.

Investors might also notice recent changes to analyst estimates for DIS. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 15.64% lower within the past month. DIS is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, DIS is currently trading at a Forward P/E ratio of 125.59. This represents a premium compared to its industry's average Forward P/E of 71.18.

It is also worth noting that DIS currently has a PEG ratio of 6.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Media Conglomerates was holding an average PEG ratio of 6.11 at yesterday's closing price.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 248, which puts it in the bottom 3% 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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