Disney (DIS) Stock Looks to Build on Recent Gains with Q2 Report

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Entertainment and media company Walt Disney (DIS) reports fiscal second-quarter numbers May 8. The company reports after the market close with the consensus calling for earnings of $1.59 per share on revenue of $14.58 billion. During the same period last year Disney earned $1.84 on revenue of $14.55 billion and DIS stock is up 22.3% year to date.

Technical Analysis

DIS stock was recently trading at $134.13 down $8.24 from its 12-month high and $36.45 above its 12-month low. InvestorsObserver’s Stock Score Report gives DIS a 89 long-term technical score and a 90 short-term technical score. The stock has recent support above $130 and recent resistance below $140. Of the 12 analysts who cover the stock 10 rate it Strong Buy, 1 rate it Buy, 1 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, DIS gets a score of 82 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Disney is up sharply over the last year as the company gears up to launch its streaming service which is expected to launch in November. Analysts expect the company to aggressively go after Netflix (NFLX) with a large library of shows and movies and a lower price than the streaming leader. Disney has been dealing with pay-tv subscriber losses, particularly on its ESPN channel as a result of cord-cutting that has hurt the overall pay-tv market. Disney has managed to remain strong thanks to strength in its amusement park and movies segments. The company’s latest movie, “Avengers: Endgame” shattered previous box-office records, pulling in $1.2 billion worldwide in the box office its opening weekend. The company’s ESPN numbers will be in focus, but declining pay-tv subscribers is nothing new and will not be a huge factor unless the numbers are dramatically lower. Wall Street is very bullish on the stock at this point with the strong box-office showing and the upcoming launch of the company’s streaming service. DIS stock is just shy of its all-time high and is currently trading at 18 times earnings so there is additional upside potential on another earnings beat. Analysts see additional upside with an average price target of $141.31 on the stock.

About The Walt Disney Company

Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm, and also operates media networks including ESPN and several TV production studios. Disney recently reorganized into four segments with one new segment, direct-to-consumer and international. The new segment includes the two announced OTT offerings, ESPN+, and the Disney SVOD service. The plan also combines two current segments, parks & resorts and consumer products, into one. The media networks group contains the U.S. cable channels and ABC. The studio segment holds the movie production assets.

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