Trade-Ideas: Walt Disney (DIS) Is Today's Post-Market Leader Stock

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 Walt Disney ( DIS) as a post-market leader 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 $596.7 million.
  • DIS is up 2.6% today from today's close.

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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 1.2%. DIS has a PE ratio of 20.7. Currently there are 13 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 9 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 $122.5 billion and is part of the services sector and media industry. Shares are down 7% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Walt Disney as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • DIS's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 7.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • DISNEY (WALT) CO has improved earnings per share by 13.2% 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 ($3.95 versus $3.38).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Media industry average, but is less than that of the S&P 500. The net income increased by 12.1% when compared to the same quarter one year prior, going from $1,244.00 million to $1,394.00 million.
  • Net operating cash flow has significantly increased by 78.17% to $2,735.00 million when compared to the same quarter last year. In addition, DISNEY (WALT) CO has also vastly surpassed the industry average cash flow growth rate of -6.65%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.12% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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