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Disney (DIS) Beats Q4 Profit Expectations, Analysts Recommend 'Buy' with $146 Target

StockInvest.us, 7 months ago

Disney Technical Analysis

The Walt Disney Company (DIS) closed at $84.50 on November 8, 2023, reflecting a marginal drop of 0.11%. The trading volume was 21.28 million, slightly higher than its average trading volume of 14.32 million. Based upon the 14-day Relative Strength Index (RSI) reading of 55, the stock is in neutral territory, neither in an overbought nor an oversold state.

The company's 50-day moving average is $82.59, below the closing price of $84.5, suggesting a recent uptick in the stock's momentum. However, DIS's current position remains down compared to the 200-day moving average of $91.90, indicating a potential downward trend over a longer period.

The negative MACD suggests bearish short-term momentum. The Average True Range (ATR) was 1.98, indicating volatility. The stock has key support and resistance levels at $83.68 and $85.58, respectively.

Fundamental Analysis

Disney has market capitalization of $154.6 billion. Following the Earnings Announcement on November 8, 2023, recent news indicates that Disney beat Q4 profit expectations. CEO Bob Iger initiative aimed at fixing content trouble at the studios and his efforts to cut costs by $7.5 billion further demonstrate encouraging signs for future financial health.

Disney The company's current P/E ratio is 68.7, which is relatively high, suggesting that the market has high expectations for Disney's future earnings growth. The EPS stands at $1.23, while the DCF value per share is $90.86, suggesting potential upside from current levels.

Analyst Ratings

The analyst consensus currently stands at 'Buy,' with nineteen analysts recommending the stock for purchase, three indicating 'Hold,' and one suggesting 'Sell.' The consensus target price based on the median is $146, while the highest target is $263 and the lowest is $93. This range suggests a considerable upward move from its current level, indicating significant potential for future growth.

Outlook and Recommendation

On the fundamental front, Disney seems to be progressing on cost-cutting measures while beating Q4 earnings expectations. The company's CEO is also taking active steps to improve studio performance. Although the technical indicators suggest a bearish short-term momentum, the long-term anticipated positive earnings growth makes this stock noteworthy.

Expectations for the next trading day and for the upcoming week are mainly reliant upon market reaction to recent corporate actions and news. If investor sentiment stays positive, one might anticipate the stock to hover around or break through the resistance level of $85.58.

Based on the aforementioned analysis, the overall recommendation would be a 'Buy,' primarily driven by the cost-cutting measures, potential for improvements in studio operations, and the strong analyst sentiment. However, investors are encouraged to pay close attention to the company's ongoing performance and market conditions to determine if the stock aligns with their individual risk tolerance and investment goals.

Check full Disney forecast and analysis here.