Core Insights - Walt Disney (DIS) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates by an average of 22.55% in the last two quarters [1][2]. Earnings Performance - For the last reported quarter, Disney achieved earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.18 per share, resulting in a surprise of 22.88% [2]. - In the previous quarter, Disney was expected to report earnings of $1.44 per share but delivered $1.76 per share, leading to a surprise of 22.22% [2]. Earnings Estimates and Predictions - Estimates for Disney have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +1.59%, indicating bullish sentiment among analysts regarding its near-term earnings potential [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat in the upcoming report, scheduled for August 6, 2025 [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate [7].

Group 1 - Paramount Global is a major media and entertainment conglomerate with assets including Paramount Pictures, CBS, MTV, Nickelodeon, Paramount+, and Pluto TV [1] - The company has agreed to merge with Skydance Media in a two-step deal after a prolonged battle [1] Group 2 - The merger is expected to help build a consistent, low-risk passive income portfolio for investors [1] - The investment strategy emphasizes risk assessment over speculative growth, aligning with contrarian and value-driven principles [1]

Group 1: Stock Performance - Walt Disney's stock closed at $122.94, with a daily increase of +1.55%, outperforming the S&P 500's gain of 0.78% [1] - Over the past month, the stock has risen by 2.03%, which is below the Consumer Discretionary sector's gain of 4.9% and the S&P 500's gain of 5.88% [1] Group 2: Upcoming Earnings - The upcoming earnings report for Walt Disney is scheduled for August 6, 2025, with projected EPS of $1.47, indicating a 5.76% increase year-over-year [2] - Revenue for the upcoming quarter is estimated at $23.7 billion, reflecting a 2.35% rise from the same quarter last year [2] Group 3: Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $5.78 per share, with revenue expected to reach $95.15 billion, representing increases of +16.3% and +4.14% respectively from the previous year [3] Group 4: Analyst Estimates and Confidence - Recent adjustments to analyst estimates for Walt Disney reflect evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Walt Disney as 2 (Buy) [6] Group 5: Valuation Metrics - Walt Disney's Forward P/E ratio stands at 20.96, which is lower than the industry average of 21.25, suggesting the stock may be trading at a discount [7] - The company has a PEG ratio of 1.77, compared to the Media Conglomerates industry's average PEG ratio of 2.53 [8] Group 6: Industry Context - The Media Conglomerates industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 189, placing it in the bottom 24% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Insights - Disney is experiencing significant growth in its direct-to-consumer streaming platforms, particularly with the integration of ESPN into Disney+, which is expected to enhance its competitive position in the streaming market [1][8] - The streaming segment reported an operating income of $336 million in Q2 2025, a substantial increase from $47 million in the same quarter last year, indicating a successful turnaround [1][8] - Profitable streaming operations are allowing Disney to invest in high-profile content, such as Moana 2 and Inside Out 2, which not only boosts streaming engagement but also enhances revenue across merchandise, parks, and cruises [2][8] Streaming Subscriber Growth - In Q2 2025, Disney+ added 1.4 million subscribers, reaching a total of 126 million, while Hulu reached 54.7 million subscribers, bringing Disney's total streaming subscribers to 180.7 million, a 2.5% sequential increase [4][8] - This growth reflects Disney's successful transition from traditional media to streaming, showcasing real momentum in subscriber acquisition [4] Competitive Landscape - Netflix remains a dominant player in the U.S. streaming market, with over $11 billion in revenue in Q2 2025 and a 45% earnings growth, leveraging its scale and exclusive content [4] - Paramount Global, through Paramount+ and Pluto TV, is also competing with Disney+ by utilizing its extensive content library, although it faces profitability challenges due to debt and operating losses [5] Financial Performance and Valuation - Disney's stock has gained 9.1% year-to-date, underperforming compared to the Zacks Consumer Discretionary sector and the Zacks Media Conglomerates industry [6] - The current forward 12-month Price/Earnings ratio for DIS stock is 19.46X, compared to the industry's 21.1X, indicating a relatively favorable valuation [9] - The Zacks Consensus Estimate for Disney's 2025 earnings is $5.78 per share, reflecting a 16.3% increase from the previous year [12]

Core Insights - Disney presents a compelling investment opportunity for the second half of 2025, with shares gaining 9.3% year to date as multiple business transformation catalysts converge to drive sustained outperformance [1][7] Streaming Business Performance - Disney's direct-to-consumer transformation has achieved significant profitability, generating $336 million in operating income during fiscal Q2 2025, with Disney+ adding 1.4 million subscribers to reach a total of 126 million [2][9] - The launch of the ESPN streaming service in Fall 2025 is expected to create a new revenue stream from Disney's most profitable content, enhancing monetization capabilities [4] Strategic Partnerships and Content Strategy - Disney's partnership with ITV in the UK enhances subscriber value and market reach, allowing Disney+ customers access to premium ITV content while ITVX viewers can sample Disney+ offerings [3] - The content slate for the remainder of 2025 includes highly anticipated releases such as Zombies 4, Percy Jackson and the Olympians Season 2, and Marvel's Wonder Man series, focusing on quality over quantity to compete with Netflix [5] Theme Park Expansion - Disney's $60 billion capital investment program over 10 years represents the largest theme park expansion in its history, with a projected mid-teens return on invested capital and capacity increases of 20-25% by 2027 [11][14] - The expansion includes significant projects like the new Villains Land and Cars-themed Frontierland replacement, addressing demand-supply imbalances and maintaining premium pricing power [12] Financial Performance - In fiscal Q2 2025, Disney reported revenues of $23.6 billion (+7% YoY) and adjusted EPS of $1.45 (+20% YoY), prompting management to raise full-year guidance to $5.75 EPS, indicating 16% growth [14][16] - The experiences segment revenues reached $8.9 billion (+6% YoY), demonstrating resilience in pricing power despite macroeconomic pressures [15] Valuation and Competitive Position - Disney trades at a forward P/E of approximately 19.38x, below the Zacks Media Conglomerates industry average of 21.06x, indicating a potentially undervalued investment opportunity [18] - The company's unmatched IP portfolio across Disney, Pixar, Marvel, Star Wars, and National Geographic creates sustainable competitive advantages, allowing for cross-platform monetization [21] Conclusion - Disney is positioned for sustained outperformance as multiple catalysts converge, making it an attractive buy for investors in the second half of 2025 [22]

Company Performance - Walt Disney's stock closed at $121.82, down 1.09% from the previous trading session, underperforming the S&P 500 which lost 0.07% [1] - The stock has increased by 6.48% over the past month, outperforming the Consumer Discretionary sector's gain of 5.29% and the S&P 500's gain of 3.94% [1] Upcoming Earnings - Walt Disney is set to release its earnings report on August 6, 2025, with an anticipated EPS of $1.47, reflecting a 5.76% increase year-over-year [2] - The consensus estimate for revenue is $23.7 billion, indicating a 2.35% increase compared to the same quarter of the previous year [2] Full Year Projections - For the full year, earnings are projected at $5.78 per share and revenue at $95.15 billion, representing increases of 16.3% and 4.14% respectively from the prior year [3] Analyst Estimates - Recent modifications to analyst estimates for Walt Disney are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Walt Disney as 2 (Buy) [6] Valuation Metrics - Walt Disney has a Forward P/E ratio of 21.32, which is in line with the industry average [7] - The company has a PEG ratio of 1.8, compared to the Media Conglomerates industry average PEG ratio of 2.21 [7] Industry Context - The Media Conglomerates industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 150, placing it in the bottom 40% of over 250 industries [8]

Core Insights - Disney generates a significant portion of its revenues from the Entertainment segment, accounting for 45.2% in the second quarter of fiscal 2025, with Linear Networks contributing 22.7%, Direct-to-Consumer (DTC) at 57.3%, and Content sales/Licensing and other at 20% [1] Direct-to-Consumer Business - The DTC business, which includes Disney+ and Hulu, has been a major driver for Disney, boasting 126 million subscribers for Disney+ and 54.7 million viewers for Hulu by the end of the fiscal second quarter [2] - Disney is focused on expanding its content portfolio globally, with upcoming titles such as Miley Cyrus: Something Beautiful, Lilo & Stitch, Pixar's Elio, and Marvel's The Fantastic Four: First Steps [3] Strategic Initiatives - Disney's strategy to enhance the DTC business includes improving user experience through personalization and customization features, as well as increasing investments in local content outside the United States [4] - The company plans to launch "ESPN," which will streamline access to live events and studio shows, and will offer bundling opportunities with Disney+ and Hulu, creating a new revenue stream [5] Competitive Landscape - Disney faces stiff competition from Netflix and Comcast in the streaming market [6] - Netflix is experiencing growth due to a robust portfolio of localized content and high engagement, with about two hours of viewing per member per day [7] - Comcast's Peacock is benefiting from a diverse content strategy that includes NBCUniversal originals and live sports, appealing to a broad audience [8] Financial Performance - Disney's shares have appreciated 11.4% year-to-date, underperforming the Zacks Consumer Discretionary sector's return of 12.9% and the Zacks Media Conglomerates industry's appreciation of 14.0% [9] - The stock is currently trading at a trailing 12-month Price/Earnings ratio of 21.60X, compared to the industry's 24.40X, with a Value Score of B [13] - The Zacks Consensus Estimate for Disney's 2025 earnings is $5.78 per share, reflecting a 16.3% increase from the previous year [15]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1][2]. Company Analysis: Walt Disney (DIS) - Walt Disney currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4]. - Over the past week, DIS shares increased by 4%, outperforming the Zacks Media Conglomerates industry, which rose by 1.51% [6]. - In a longer timeframe, DIS shares have risen by 48.87% over the past three months and 26.49% over the past year, significantly outperforming the S&P 500's gains of 10.83% and 14.92%, respectively [7]. - The average 20-day trading volume for DIS is 9,671,427 shares, indicating strong trading activity [8]. Earnings Outlook - In the last two months, 9 earnings estimates for DIS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $5.45 to $5.78 [10]. - For the next fiscal year, 9 estimates have also moved higher, reflecting positive sentiment regarding DIS's earnings potential [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, DIS is positioned as a promising investment opportunity with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Momentum Style Score - Liberty Media Corporation - Liberty Formula One Series A (FWONA) has a Momentum Style Score of B, indicating potential for solid momentum [3] - The Zacks Rank for FWONA is 2 (Buy), suggesting it is positioned for outperformance in the market [4] Group 2: Price Performance - FWONA shares have increased by 7.15% over the past week, outperforming the Zacks Media Conglomerates industry, which rose by 0.84% [6] - Over the past quarter, FWONA shares have gained 14.25%, and over the last year, they have increased by 44.05%, while the S&P 500 has only moved 5.86% and 12.83%, respectively [7] Group 3: Trading Volume - The average 20-day trading volume for FWONA is 124,046 shares, which serves as a baseline for price-to-volume analysis [8] Group 4: Earnings Outlook - In the last two months, one earnings estimate for FWONA has increased, raising the consensus estimate from $0.62 to $1.20 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [10] Group 5: Conclusion - Given the positive momentum indicators and earnings outlook, FWONA is recommended as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, addressing the debate on the best metrics to focus on [2] Group 2: Liberty Media Corporation - Liberty Formula One Series C (FWONK) Analysis - FWONK currently has a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - Over the past week, FWONK shares increased by 6.97%, outperforming the Zacks Media Conglomerates industry, which rose by 0.84% [6] - In the last quarter, FWONK shares rose by 16.34%, and over the past year, they gained 43.89%, significantly outperforming the S&P 500's increases of 5.61% and 10.35% respectively [7] Group 3: Trading Volume and Earnings Outlook - FWONK's average 20-day trading volume is 907,863 shares, which is a useful indicator of market interest and price movement [8] - In the past two months, three earnings estimates for FWONK have increased, raising the consensus estimate from $1.38 to $1.74, with four upward revisions for the next fiscal year [10] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, FWONK is positioned as a promising investment opportunity [12]