Disney Is Rising Along Its Reversion to the Mean

The Walt Disney Company released two consecutive better-than-expected quarterly earnings reports on Feb. 6 and May 8, and the stock has been slowly climbing its 200-week simple moving average since the week of Sept. 8, 2017. This “reversion to the mean” is now at $102.49. This is a longer-term indication that Disney stock may be losing its mantra as being dead money.

Disney shares closed Friday, June 8, at $103.98, down 3.3% year to date and 8.1% below the 2018 high of $113.19 set on Jan. 3. The stock is up 6.4% since it set its 2018 low of $97.68 on May 3.

Disney has been disappointing investors since setting its all-time intraday high of $122.08 back on Aug. 4, 2015. This report was the first that showed warnings for its ESPN franchise. Helping the Mouse House now is Disney’s planned deal to acquire significant assets from Twenty-First Century Fox, Inc. . The potential deal does not include Fox Sports or Fox Broadcasting. (See also: Can Disney Spend its Way to Content Dominance?)

Disney stock is reasonably priced based on its P/E ratio of 13.86 and dividend yield of 1.62% as its weekly chart is upgraded to positive. …read more

Read more here: Disney Is Rising Along Its Reversion to the Mean

Category: DIS, FOXA

Leave a Reply

%d bloggers like this: