Disney Stock Forecast: Is Disney a buy?

Disney Stock Forecast: Is Disney a buy?
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Disney Stock Forecast, May 5th: In the next 24 hours, shares of DIS are expected to trade between $109 and $118.

The Overall recommendation for the next 24 hours is Neutral.

1 of the 5 Momentum Indicators are Positive. 3 of the 5 Indicators are Negative.
2 analysts

Disney is trading 0.96% lower at $115.07 in the current pre-market trading session.

Metric
Value
Trend
Share Volume
11.4 M
Higher
Average Share Volume
11.4 M
N/A
Forward PE (1 Year)
25.66
N/A

Disney Stock Forecast: DIS Performance Chart

1 Day
5 Days
1 Month
1 Year
-0.034%
-0.84%
-14.3%
-35.9%

Disney Stock Forecast: Momentum Summary

Momentum Indicator
Indicator Direction
Price (Pre-Market)
Lower
Technicals
Neutral
Volume
Higher
Performance vs NASDAQ
Lower
Social Media Sentiment
Lower

Disney Stock Forecast: Technical Analysis

Source
Support
Resistance
Recommendation
$110 (S3)
$116 (R1)
Buy
$109 (S3)
$118 (R1)
Sell

Disney Stock Forecast: Latest Disney Stock News and Tweets

SismasStock on Twitter: “$DIS 80% Win rate on 6 trades in 1 month. Profit Factor of 14.8. Rating is Bullish pic.twitter.com/WlXJQhBwwi / Twitter”

DIS 80% Win rate on 6 trades in 1 month. Profit Factor of 14.8. Rating is Bullish pic.twitter.com/WlXJQhBwwi

Disney Stock Forecast: Walt Disney Social Media Sentiment

Social Media Sentiment Period
Positive Sentiment
Negative Sentiment
Net Sentiment
Last 7 days
6%
24%
-18%
Last 24 hours
5%
25%
-20%

A Rebound Near the Corner- Reasons.

  • At the outset of the pandemic, Disney was forced to shut down all the theme parks. With the development of vaccines and US population being vaccinated more than 60%, Disney is reopening the parks and recently reported that revenue from theme parks has nearly doubled to $5.4 billion in 2021 from $2.7 billion in 2020.
  • The recent sell off is primarily due to low subscriber count of 2.1 million in Q4, however Disney CEO Bob Chapek reiterated the target for Disney+ of 245 million subscribers by mid of 2024 and is less concerned about the quarterly results and focus is on long term growth.
  • Halt in production due to pandemic is the main reason for low subscriber count. Eventually Disney’s content producing machine will hit the stride and the streaming content will be loaded with content and will serve as platter to increase the subscriber count- a headwind in the fourth quarter results.
  • Disney has not been favourite stock for 2021 and its valuations is further down after recent downfall but historically December has produced second highest average monthly return as holiday season is around the corner and foot fall is expected to increase. A growth in revenue in core business will definitely help Disney to bounce back strongly. 

Upcoming Movies on Disney+ and a Boost for Disneyland

  • Disney has been on back foot for the slow growth in subscriber base, but in December, the content pipeline will be flowing to lure public. Diary of Wimpy Kid is appearing in animation and Marvel’s Hawkeye series which began last month will wrap up by end of this month.
  • Home Alone 4 is also scheduled in this month among much awaited Encanto and Ron’s Gone Wrong. Star Wars are waiting for Dec 29 for the new series featuring bounty hunter Boba Fett.
  • Theatrical release of Disney comes from 20th Century Studios, which it acquired two years ago, and West Side Story is scheduled to be released in theatres in December. It is being directed by Steven Spielberg and his presence at the helm will draw crowd back in the theatres.
  • The debut of Genie, Genie+ and Lightning Lane+ in Florida gives guests the ability to pay $15 a day for access to former FastPass lines. The system is set to come to Disneyland at a higher rate of $20 a day for Genie+ by December 20 and it will be major attraction for Florida people. 

Future Outlook for Disney: A Buy Opportunity in the Recent Dip?

  • Loop Capital has reduced the target price to $190 from $205, citing increased expenditure for content production for Disney+, affecting its profitability, but acknowledges that same will catalyse the long term growth and believe that investors should not believe in near term weakness while looking for buying opportunities.
  • On a technical analysis point of view, Disney share price is lower than every moving average simple and exponential and it is sell signal from every technical indicator perspective. However, all is not bad and Disney share is in oversold zone from RSI perspective indicating a reversal soon.
  • Demand is again picking up after fears from Omicron variant is fading away and reopening of theme parks. Also content spree on Disney+ as mentioned above will take care of subscriber base. Recent dip certainly gives long term investors a chance to enter and not to press sell in panic mode.

DISNEY Stock Recommendation: BUY, SELL OR HOLD. What to do?    

A week ago on the 9th Feb. Disney reported the quarterly results for the fourth quarter. The company witnessed a substantial increase in subscriptions from its streaming business resulting in better than expected fiscal Q1 earnings which stood at $1.06 per share over revenue of $21.8 B. In the post-result session, the stocks of Disney rose more than 3% and regained the $150 level. Since then, the price has been steadily increasing. Analysts expect the price to hit $200 by the end of this year, but first, it would need to exhibit significant improvements as the stock has been facing a sell-off at around $160. Also, the relative strength line hasn’t yet bottomed and has been forming lower lows. It would be better to wait until an uptrend is confirmed so the overall recommendation for the Disney stocks is Hold. 

Read: NIO Stock Forecast

-Vineet Agarwal

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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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