Disney (DIS) Upgraded to Buy: Here's Why

Core Viewpoint - Walt Disney (DIS) has been upgraded to a Zacks Rank 2 (Buy), reflecting an upward trend in earnings estimates, which significantly impacts stock prices [1][2]. Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, influencing their buying and selling decisions, which in turn affects stock prices [3]. Disney's Earnings Outlook - The rising earnings estimates for Disney indicate an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending September 2025, Disney is projected to earn $5.85 per share, with a 2% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [6]. - The upgrade of Disney to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].