Walt Disney (DIS) Boasts Earnings & Price Momentum: Should You Buy?

Core Insights - The Zacks Focus List is a curated portfolio of 50 stocks aimed at long-term investors, expected to outperform the market over the next 12 months [3][5] - The Focus List has demonstrated strong past performance, with a cumulative return of 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P 500's return of 854.95% [5] - The methodology for selecting stocks in the Focus List relies heavily on earnings estimate revisions, which are critical for predicting future growth and profitability [6][7] Focus List Performance - In 2020, the Focus List gained 13.85% on an annualized basis, outperforming the S&P 500's return of 9.38% [5] - The portfolio's historical performance reinforces its value as a starting point for investors [5] Stock Selection Methodology - Stocks are chosen based on the Zacks Rank, which utilizes earnings estimate revisions to identify potential winners [8][9] - The Zacks Rank is based on four main factors: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] Case Study: Walt Disney Company - Walt Disney Company reported revenues of $91.4 billion in fiscal 2024 and was added to the Focus List at$85.98 per share, with shares increasing by 29.25% to $111.13 since then [11] - Eight analysts have revised Disney's earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by$0.24 to $5.72, and an average earnings surprise of 16.4% [12]