It doesn’t matter your age or experience: diving into the stock market and investing with confidence are goals every investor shares. Whether you’re a seasoned pro or a novice, identifying stellar stocks has never been easier, thanks to tools like the Zacks Style Scores, which rate stocks based on value, growth, and momentum.
For those keen on value investing, the quest revolves around finding great stocks at great prices. It’s about pinpointing companies that are trading below their true worth. That’s where the Value Style Score comes in, examining vital ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to spotlight the most attractive and undervalued stocks.
Enter Walt Disney Company (DIS), headquartered in the magical Burbank, CA. With assets spanning movies, TV shows, and theme parks, this entertainment giant reported revenues of $88.89 billion for fiscal 2023. Currently, DIS holds a Zacks Rank #3 (Hold) and boasts a Value Style Score of B as well as a VGM Score of B. Despite the Media Conglomerates industry’s P/E of 15.9X, Disney’s shares trade at a forward P/E of 18.2X. Moreover, DIS has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 12.9X, and a Price/Sales ratio of 1.8X.
But savvy investors know that valuations aren’t everything; positive earnings trends are crucial too. Over the past 60 days, eight analysts have revised their earnings estimates upwards for fiscal 2024. The Zacks Consensus Estimate has nudged up by $0.13 to $4.89 per share. The average earnings surprise sits at an impressive 18%.
Given Disney’s solid rankings, robust earnings metrics, and appealing valuation scores, it’s worth considering adding DIS to your portfolio. Remember, the path to smart investing often involves uncovering these gems.
What do you think about Disney as a value stock? Share your thoughts in the comments and don’t forget to pass this article along—it might help another investor out there!
Source: Zacks Equity Research
