Walt Disney today
(As of 12/27/2024 5:45 PM ET)
- 52 week range
- $83.91
▼
US$123.74
- Dividend yield
- 0.90%
- P/E ratio
- 41.16
- Target price
- $123.58
Walt Disney Co. New York Stock Exchange: DIS is one of the second largest entertainment companies in the world with a market capitalization of $205 billion. This is a common noun, synonymous with nostalgia for childhood. Today, the entertainment giant reaches a wide variety of demographics and operates globally through two primary segments: Disney Media and Entertainment Distribution and Disney Parks, Experiences and Products.
After underperforming for much of the year, Disney shares have staged an impressive recovery, up 25.5% year-to-date, slightly trailing the SPY ETF. Following a strong fourth-quarter earnings report on Nov. 14, shares are up more than 20% this quarter, holding above key moving averages near significant resistance. This shift in dynamics raises a key question: Is it time to buy the entertainment giant as it appears poised for a breakthrough?
Changing Momentum Leads to Renewed Confidence
Disney shares hit a 52-week low of nearly $83 in August after a sharp selloff from April highs of $120. However, recent developments, including better-than-expected fourth-quarter results, have helped the stock rebound, bolstering investor confidence.
The Walt Disney Company (DIS) price chart for Sunday, December 29, 2024.
The company’s fourth-quarter earnings showed improvement. Revenue rose 6.3% year over year to $22.57 billion, beating estimates, and earnings per share of $1.14 beat expectations by $0.05. Highlights include strong box office revenue, streaming profitability and record entertainment revenue despite challenges at international parks. This improvement has led to renewed optimism about Disney’s ability to address market challenges and unlock future growth opportunities.
Streaming earnings and box office success
Disney’s streaming division, including Disney+, Hulu and ESPN+, moved toward profitability, with operating income of $321 million in the fourth quarter, compared with a loss of $387 million a year earlier. Subscriber growth was modest, but streaming losses fell significantly. Double-digit operating profit growth is expected in 2025 and beyond.
Meanwhile, blockbuster hits such as Inside Out 2 and Deadpool & Wolverine set records, driving entertainment segment revenue up 14% year-on-year. These successes confirm Disney’s dominance at the box office and demonstrate its ability to capitalize on premium intellectual property, a competitive advantage in an increasingly fragmented media landscape. However, challenges remain for traditional TV networks, with revenues and profits declining as consumers prioritize streaming TV over pay TV packages.
Parks and Recreation Provide Stability
Disney’s domestic parks and consumer products business grew 1% annually to $8.24 billion, with higher guest spending and increased cruise line activity driving operating income up 5%. Despite headwinds at its international parks, Disney remains committed to expanding its entertainment segment, signaling confidence in its long-term potential. Future projects, including park expansions and new attractions, are expected to drive strong revenue growth as consumer demand for unique experiences remains strong.
Bullish outlook, but insider selling causes caution
Walt Disney stock forecast today
$123.58
Growth potential 10.79%Moderate purchase
Based on ratings from 25 analysts
| High forecast | US$140.00 |
|---|---|
| Average forecast | $123.58 |
| Low forecast | $95.00 |
Walt Disney Stock Forecast Details
Analysts remain bullish despite a series of insider stock sales, including a $42.6 million sale by CEO Bob Iger in the fourth quarter. Of the 25 ratings, 19 are Buy, and the consensus target suggests an upside of more than 9%. From a technical perspective, the stock’s consolidation around $118 indicates breakout potential. A move above this resistance could confirm the uptrend on a higher timeframe and further strengthen the momentum.
With improving fundamentals, positive sentiment and a favorable technical position, Disney makes a compelling case for investors looking to enter the entertainment sector. However, insider selling and problems in traditional media require monitoring as the company continues its transformation under Bob Iger.
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