Disney: The Ideal Buy Now (Technical Analysis)
Jul. 17, 2023 8:12 AM ET The Walt Disney Company (DIS)
Introduction
The Walt Disney Company (DIS) is a multinational entertainment conglomerate that owns a variety of businesses, including theme parks, movies, television, and streaming services. The company has been under pressure in recent months due to the COVID-19 pandemic, which has led to declines in revenue and earnings. However, the company is now starting to recover and the stock is trading near its all-time highs.
Technical Analysis
Technical analysis is a method of analyzing the price movements of a security in order to predict future price movements. Technical analysts use a variety of tools and indicators to analyze price movements, including moving averages, trendlines, and support and resistance levels.
Consolidation Pattern
The author of the article believes that DIS is currently trading in a consolidation pattern. This pattern is a sign of strength and suggests that the stock is poised to break out to the upside. The consolidation pattern has been in place for several months and the stock has been trading in a narrow range. This suggests that investors are accumulating shares and that the stock is ready to move higher.
200-Day Moving Average
Another bullish indicator for DIS is the fact that it is trading above its 200-day moving average. The 200-day moving average is a long-term trend line and it is considered to be a support level for the stock. The fact that DIS is trading above this level suggests that the stock is in a bullish trend.
Price Target
The author of the article believes that DIS could reach a price target of $121.19 in the near future. This price target is based on the author’s technical analysis of the stock. The author believes that the stock is poised to break out to the upside and that it could reach this price target in the next few months.
Risks
The author of the article also notes that there are some risks to DIS’s technical outlook. The stock is approaching its all-time highs and could face some resistance at those levels. The broader market is also volatile and DIS could be affected by any market sell-offs.
Conclusion
Overall, the author of the article believes that DIS is a good technical buy at current levels. However, investors should be aware of the risks and use a stop-loss order to protect their investment.
Other Factors to Consider
In addition to the company’s technical outlook, there are a number of other factors that investors should consider when evaluating DIS. These include:
Financial Performance
DIS has been reporting strong financial results in recent quarters. In the most recent quarter, the company reported revenue of $19.2 billion and earnings per share of $1.79. This was an increase of 23% and 28%, respectively, from the same quarter last year.
Competitive Landscape
DIS faces competition from a number of other entertainment companies, including Comcast, AT&T, and Netflix. However, DIS has a number of strengths, including its strong brand, its large library of content, and its global reach.
Product Roadmap
DIS has a number of new products and services in the pipeline, including the Disney+ streaming service and the Star Wars: Galaxy’s Edge theme park. These new products and services could help DIS to grow its business in the future.
Valuation
DIS is currently trading at a price-to-earnings ratio of 20. This is below the average price-to-earnings ratio of the S&P 500, which is currently at 22. This suggests that DIS may be undervalued.
Conclusion
DIS is a complex company with a lot of moving parts. As a result, it can be difficult to value the company accurately. However, I believe that the stock is fairly priced at its current level. The upcoming earnings report will be a key event for the stock, and investors should pay close attention to the company’s guidance for the future.
…
To read full story, click?below