Disney(DIS) ZACKS·2025-01-28 23:50Core Viewpoint - Walt Disney's stock performance has shown a slight decline recently, but it has outperformed the Consumer Discretionary sector and the S&P 500 over the past month, indicating a mixed but generally positive outlook for the company ahead of its upcoming earnings report [1][2]. Financial Performance - The upcoming earnings report for Walt Disney is scheduled for February 5, 2025, with projected EPS of 24.7 billion, up 4.87% from the previous year [2]. - Full-year Zacks Consensus Estimates predict earnings of 94.94 billion, representing year-over-year increases of 8.85% and 3.91%, respectively [3]. Analyst Sentiment - Recent revisions to analyst forecasts for Walt Disney are crucial as they indicate short-term business trends. Positive estimate revisions are seen as a sign of optimism regarding the company's outlook [4]. - The Zacks Rank system, which assesses estimate changes, currently ranks Walt Disney at 3 (Hold), with no changes in the EPS estimate over the past month [6]. Valuation Metrics - Walt Disney is trading at a Forward P/E ratio of 20.94, which is below the industry average of 22.08, suggesting that the stock is undervalued compared to its peers [7]. - The company has a PEG ratio of 2.03, which is lower than the industry average of 2.49, indicating a more favorable valuation in terms of projected earnings growth [8]. Industry Context - The Media Conglomerates industry, to which Walt Disney belongs, ranks in the bottom 28% of all industries, according to the Zacks Industry Rank, which assesses the performance of industry groups [8][9].