Walt Disney (DIS) Stock Update: A Closer Look at Recent Movements

Walt Disney (DIS) saw a decline in its stock price during the latest trading session, closing at $111.35. This shift represents a decrease of -1.48% compared to the previous trading day. Despite this downturn, Disney's performance was relatively better than the broader market; the S&P 500 experienced a daily loss of 2.95%, while the Dow Jones Industrial Average fell -2.59%, and the tech-centric Nasdaq index saw a depreciation of -3.56%.

Looking back over the past month, Walt Disney's stock has shown a slight increase of 0.53%. However, it has not kept pace with the Consumer Discretionary sector, which gained 4.56%, nor the S&P 500's increase of 3.15%.

Investors are now turning their attention toward Walt Disney's upcoming earnings report. Analysts project that the company will achieve an earnings per share (EPS) of $1.45, which would represent a significant growth of 18.85% year over year. Revenue for this quarter is estimated to be around $24.7 billion, suggesting an increase of 4.87% from the same quarter last year.

For the complete fiscal year, the Zacks Consensus Estimates predict that Walt Disney will report earnings of $5.41 per share and a total revenue of $94.94 billion. These figures reflect increases of 8.85% and 3.91% respectively compared to the previous year.

Investors should also keep an eye on any recent changes in analyst estimates for the company. Such revisions often mirror shifting business trends in the short term. When analysts revise estimates upward, it usually indicates optimism regarding the company's performance and profitability.

Research indicates a direct correlation between changes in estimates and short-term stock performance. To help investors track this, a proprietary model known as the Zacks Rank is utilized. This system rates stocks from #1 (Strong Buy) to #5 (Strong Sell), boasting a strong historical performance record. Notably, stocks rated #1 have generated an average annual return of +25% since 1988.

Over the past 30 days, the Zacks Consensus EPS estimate for Walt Disney has increased by 1.72%, which has contributed to its current Zacks Rank of #2 (Buy).

In terms of valuation, Walt Disney’s stock currently has a Forward P/E ratio of 20.88. In comparison, the average Forward P/E ratio for its industry is 20.86, positioning Disney slightly above its peers.

Additionally, Disney's PEG ratio stands at 2.02. The PEG ratio considers both the P/E ratio and the company’s expected earnings growth, setting it apart from the standard P/E ratio. For perspective, the average PEG ratio for stocks in the Media Conglomerates sector is 2.56 based on the latest closing prices.

The Media Conglomerates industry is part of the larger Consumer Discretionary sector, which currently boasts a Zacks Industry Rank of 53, placing it within the top 22% of over 250 industry groups.

This Zacks Industry Rank is derived from averaging the Zacks Ranks of individual stocks within the group, providing a comprehensive view of industry trends. Historically, the top half of rated industries have outperformed the bottom half by a margin of 2 to 1.

For those wishing to monitor Walt Disney's stock movements in future trading sessions, various resources are available to assist with tracking.

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