The Walt Disney Company (DIS) has been dead money for investors since setting its all-time intraday high of $122.08 on Aug. 4, 2015. The company beat earnings estimates as it almost always does, but guidance was the first showing warnings for its ESPN franchise. The stock has been under a downtrend since then but has been trading around its “reversion to the mean” since the week of Sept. 8, 2017, setting up the potential for a tradeable rally.
Disney stock closed Monday at $102.48, down 4.7% year to date and down 9.5% from its 2018 high of $113.19 set on Jan. 3. The stock was in correction territory when it traded as low as $97.68 on May 3. Thus, Disney shares have already popped by 4.9% going into earnings. Analysts expect Disney to post earnings per share between $1.68 and $1.74 when it reports results after the closing bell on Tuesday, May 8. The company has been doing well lately, with crowded theme parks and two major blockbuster movies. ESPN issues may be a thing of the past, as in reality viewership has been declining since the second quarter of 2011. (See also: Disney’s ‘Infinity War’ Blows Past $1B in Sales.)
Disney is reasonably priced based on its P/E ratio of 14.25 and dividend yield of 1.66%, and it could have a positive weekly chart. …read more
Read more here: Disney Stock Is Poised for an Earnings Pop