The Walt Disney Company, or Disney as it is commonly known, is an American multinational mass media conglomerate with headquarters in Burbank, California. The company is a leader in the entertainment industry and is the world’s leading provider of animated films. The company has been making the world’s favorite movies and television shows for more than a century.
While Disney stock has been gaining in price, analysts have been cautious about its outlook. Currently, only 16 of 30 analysts rate the company’s stock as a ‘Strong Buy’ or ‘Buy’. Netflix, on the other hand, has lost favor among analysts, and it is not clear if this trend will continue.
After a shaky start to the year, Disney has been able to rekindle the enthusiasm for the stock. The company reported its financial results a few months ago, and its streaming business has performed well. Disney has also seen a spike in return visits from visitors. Despite these factors, the price-to-earnings ratio is down 70% from a year ago.
However, Disney’s stock history is far better than that of many other companies. While the recent COVID-19 pandemic negatively impacted a number of companies, Disney’s history is a much more positive story. If you’re on the fence about whether to buy Disney stock, there are a few steps you can take to buy a small amount and reap the rewards.
While the negotiations to acquire Hulu are long, the deal is likely to be finalized, and it will boost the company’s bottom line. Once the deal closes, Disney will be able to further grow its business and increase its revenue. Overall, this makes Disney stock an excellent long-term investment.
Disney is down more than half since its peak last year, but the stock is trading near its low in an eight-year price channel. A sub-$100 entry level could be a great place to buy the stock and make a quick rebound. The stock is also worth buying if you’re looking to make an investment in the entertainment industry.
Disney’s recent financials show that it’s transforming its business and is leveraging the changing media landscape. Its direct-to-consumer products, such as Disney+, will drive long-term growth. In addition, Disney has deep studio libraries that it’s leveraging to build a large subscriber base.
While Disney stocks have not enjoyed much momentum over the past year, they have shown an increase of over 12 percent over the past three months. The company’s fundamentals remain sound, but the company has been unable to match the performance of its peers. With a strong balance sheet and a solid dividend payout, the company remains an excellent investment.
Analysts’ estimates for Disney stock have a mixed record in terms of predicting earnings growth. During the past three quarters, the company has missed EPS estimates by as much as 4%. While the company has a mixed track record, earnings estimates are often favorable.