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Walt Disney (DIS) Stock Slides as Market Rises: Facts to Know Before You Trade

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Walt Disney (DIS - Free Report) closed the most recent trading day at $112.14, moving -1.06% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.92%. On the other hand, the Dow registered a gain of 0.31%, and the technology-centric Nasdaq increased by 2.03%.

Prior to today's trading, shares of the entertainment company had gained 2.29% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.7% and the S&P 500's gain of 0.81% in that time.

The investment community will be closely monitoring the performance of Walt Disney in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2025. The company's upcoming EPS is projected at $1.45, signifying a 18.85% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $24.7 billion, up 4.87% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $5.41 per share and revenue of $94.94 billion. These results would represent year-over-year changes of +8.85% and +3.91%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walt Disney. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Walt Disney currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Walt Disney is currently trading at a Forward P/E ratio of 20.94. For comparison, its industry has an average Forward P/E of 22.08, which means Walt Disney is trading at a discount to the group.

We can additionally observe that DIS currently boasts a PEG ratio of 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Media Conglomerates stocks are, on average, holding a PEG ratio of 2.49 based on yesterday's closing prices.

The Media Conglomerates industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 182, this industry ranks in the bottom 28% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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