Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Walt Disney as such a stock due to the following factors:
- DIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $657.2 million.
- DIS has traded 195,021 shares today.
- DIS is trading at a new lifetime high.
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More details on DIS:
The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The stock currently has a dividend yield of 1%. DIS has a PE ratio of 21.6. Currently there are 13 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Walt Disney has been 6.6 million shares per day over the past 30 days. Walt Disney has a market cap of $154.4 billion and is part of the services sector and media industry. The stock has a beta of 1.07 and a short float of 2.3% with 5.68 days to cover. Shares are up 17.2% year-to-date as of the close of trading on Wednesday.
rates Walt Disney as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- DIS's revenue growth has slightly outpaced the industry average of 7.6%. Since the same quarter one year prior, revenues slightly increased by 7.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DISNEY (WALT) CO has improved earnings per share by 26.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $3.38 versus $3.12 in the prior year. This year, the market expects an improvement in earnings ($4.32 versus $3.38).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 26.73% and other important driving factors, this stock has surged by 29.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.
- You can view the full Walt Disney Ratings Report.