The Walt Disney Company (DIS), headquartered in Burbank, California, is a global leader in entertainment, offering a diverse range of media, entertainment, and consumer products. With a market cap of $161.61 billion, Disney is a dominant force in the industry, renowned for its iconic films, television networks, theme parks, and streaming services. The company plays a vital role in shaping the entertainment landscape, delivering innovative content and experiences that captivate audiences worldwide.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Walt Disney is a prime example of this, reflecting its considerable size, stability, and impact in the global entertainment industry. As a leading media and entertainment conglomerate, Disney embodies the strength and resilience of a large-cap company, supported by its diverse portfolio of iconic content, strong market presence, and consistent commitment to innovation and growth across its film studios, television networks, theme parks, and streaming platforms.
DIS shares are trading 28.4% below their 52-week high of $123.74, which they hit on Mar. 28. DIS has declined 12.7% over the past three months, underperforming the Communication Services Select Sector SPDR ETF (XLC), which has gained marginally over the same time frame.
In the long term, DIS is down 1.8% on a YTD basis. However, the shares have gained 9.2% over the past 52 weeks. In comparison, the XLC has gained 17.8% in 2024 and rallied 27.5% over the past year.
However, DIS has been trading above its 50-day and 200-day moving average since mid-August, which indicates a bullish price trend.
DIS stock fell sharply by 4.5% on Aug 7 after its Q3 earnings release. Its EPS came in at $1.39, beating the consensus estimates of $1.20. The company’s revenue was $23.16 billion, surpassing Wall Street expectations of $22.91 billion.
Highlighting the contrast in performance, DIS' competitor, Comcast Corporation (CMCSA), has significantly underperformed both DIS and the broader market indexes. CMCSA has declined 10.7% over the last 52 weeks.
Analysts are optimistic about DIS' prospects despite the weak price performance. The stock has a consensus rating of "Strong Buy" from 27 analysts in coverage. The mean price target of $115.78 reflects a 30.6% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
