Walt Disney (DIS) Gains But Lags Market: What You Should Know

In the latest trading session, Walt Disney (DIS) closed at $112.22, marking a +0.22% move from the previous day. This move lagged the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.95%.

Prior to today's trading, shares of the entertainment company had lost 4.18% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 4.65% and the S&P 500's loss of 4.97% in that time.

Investors will be hoping for strength from DIS as it approaches its next earnings release, which is expected to be February 5, 2019. The company is expected to report EPS of $1.60, down 15.34% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.18 billion, down 1.14% from the year-ago period.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $7.09 per share and revenue of $60.46 billion. These results would represent year-over-year changes of +0.14% and +1.73%, respectively.

Investors might also notice recent changes to analyst estimates for DIS. These revisions help to show the ever-changing nature of near-term business trends. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. DIS is currently a Zacks Rank #3 (Hold).

Looking at its valuation, DIS is holding a Forward P/E ratio of 15.79. This valuation marks a premium compared to its industry's average Forward P/E of 11.36.

Meanwhile, DIS's PEG ratio is currently 1.91. 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 industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 42% 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.

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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