Here's Why Walt Disney (DIS) is a Strong Growth Stock

Zacks Investment Research suggests Walt Disney (DIS), with fiscal 2024 revenues of $91.4 billion, is a strong growth stock, holding a Zacks Rank of #3 (Hold) but a VGM Score of B and a Growth Style Score of A. The company is projected to experience 15.9% earnings growth this fiscal year, and the consensus earnings estimate for fiscal 2025 has increased by $0.28 to $5.76 per share following upward revisions by nine analysts, with an average earnings surprise of 16.4%.

Analysis

Walt Disney (DIS), with fiscal 2024 revenues of $91.4 billion, is highlighted by Zacks Investment Research as a potentially strong growth stock despite its current Zacks Rank #3 (Hold). This assessment is driven by its favorable Style Scores: an A for Growth and a B for VGM (Value, Growth, Momentum). The company is forecasting significant 15.9% year-over-year earnings growth for the current fiscal year. Analyst confidence for fiscal 2025 is also improving, as reflected by nine upward earnings estimate revisions in the last 60 days, which has elevated the Zacks Consensus Estimate by $0.28 to $5.76 per share. Furthermore, Disney has a consistent history of outperforming earnings expectations, evidenced by an average earnings surprise of 16.4%. Zacks suggests that the combination of a #3 Rank with strong Style Scores, such as those held by DIS, indicates potential upside, leading to their conclusion that DIS should be on investors' short list.

Key Decisions for Investors

• Given Disney's A-rated Growth Style Score and projected 15.9% earnings growth, investors with a growth focus should consider placing DIS on their watchlist despite its neutral Zacks #3 (Hold) rank.
• Closely monitor upcoming earnings releases and further analyst estimate revisions for fiscal 2025, as the existing positive trend, including a consensus EPS increase to $5.76 and a 16.4% average earnings surprise, is crucial to the growth narrative.
• Investors should weigh the Zacks #3 (Hold) rating against the strong specific growth indicators and positive analyst revisions when making allocation decisions concerning DIS.