Walt Disney’s (DIS) stock has captured significant attention lately. You’re probably asking: what makes this stock worthy of all the buzz? Here, we dive into some essential factors that could drive Disney’s near-term performance. Over the past month, Disney’s shares have dipped slightly by 0.4%, contrasting with the Zacks S&P 500 composite’s +3% increase. Within the Zacks Media Conglomerates industry, Disney’s peers have seen a 1.4% gain. This begs the question: where is Disney headed next?
At Zacks, we put a premium on earnings estimate revisions to assess a stock’s fair value, using the present value of its future earnings stream. Recently, Disney’s earnings projections have shown some intriguing trends. For the current quarter, analysts expect earnings of $1.11 per share, marking a 35.4% year-over-year increase. Yet, the Zacks Consensus Estimate has nudged down by 0.3% over the past 30 days. For the fiscal year, the consensus estimate of $4.89 suggests a 30.1% improvement, up by 3.7% over the last month.
Revenue growth is just as critical. Disney is projected to generate $22.52 billion in sales this quarter, reflecting a 6% rise from last year. Future fiscal years look promising too, with consensus revenue estimates of $91.23 billion and $94.83 billion, representing growth rates of 2.6% and 4%, respectively. Last quarter, Disney reported $23.16 billion in revenues, a 3.7% year-over-year uptick, and outperformed the Zacks Consensus Estimate by 1.06%. Its EPS of $1.39 also exceeded expectations by 15.83%.
Valuation plays a crucial role in investment decisions. It ensures the stock’s current price mirrors its intrinsic value and growth potential. Disney’s valuation metrics suggest it’s trading on par with its peers, earning a ‘C’ grade in the Zacks Value Style Score.
Now, we want to hear from you! What are your thoughts on Disney’s current stock trajectory? Do you think it’s a good time to invest? Share your insights in the comments and join the conversation with other Disney enthusiasts!
Source: Zacks Equity Research
