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Disney (DIS) Stock: Mild Bearish Trend Continues, but Long-Term Growth Potential Signals a Buy

StockInvest.us, 2 months ago

Disney Technical Analysis

The Walt Disney Company (Ticker: DIS), recorded a last close price of $81.05 on September 29, 2023, capturing a modest change, indicating a daily gain of 1.15%. The narrow daily trading range, with a high of $81.33 and a low of $80.41, signifies minor volatility, with an Average True Range (ATR) value of 1.96. Additionally, an RSI14 value of 44 indicates a neutral momentum.

The company's stock price is currently trading substantially below both the 50-Day (84.63) and 200-Day (93.27) moving averages, indicative of a mildly bearish trend over both intermediate and long-term periods. The negative MACD over 3 months (-0.57) corroborates this trend. The stock's current support and resistance levels are marked at $80.98 and $81.64 respectively.

Fundamental Analysis

Disney's market capitalization stands at $148.30 billion, based on the closing price on September 29. The earnings per share (EPS) is documented at $1.21 and the Price-Earnings Ratio reads a relatively high 66.98, suggesting a premium market evaluation of the company’s shares.

The company's outstanding share count is approximately 1.83 billion, and it exhibited an average daily trading volume of 16.15 million shares against a previous trading session when 11.25 million shares exchanged hands.

Analyzing the consensus data, it's apparent that 17 of the analyzed brokers recommended a "Buy", while 3 suggested to "Hold", and only 1 pointed at a "Sell", thus showcasing a buy consensus.

Disney The Discounted Cash Flow (DCF) reveals a value of $87.41, implying that Disney's shares might be undervalued at the present trading price. Additionally, the lower, median, and upper analyst price targets are $94, $151, and $263 respectively, with a consensus target of $156.89, indicating significant upside potential.

Recent News Impact and Predictions

The recent challenges faced by Disney, including the Hollywood strike and increased competition, have presented opportunities due to the company's efforts toward growth and revival of its core reputation. While the company's streaming business may face losses and slower growth, its park business and core portfolio are projected to drive strong earnings.

Given the current market conditions and news impact, the stock is likely to display minor volatility and continuation of the mildly bearish trend on the next trading day (October 2, 2023). For the upcoming week, however, a potential momentum buildup may occur, fuelled by the company's internal revitalization efforts and focused growth strategy.

Final Evaluation

Based on the provided information and technical-fundamental parameters, the stock seems to have a potential for upside, despite the currently mild bearish trend. Analyst consensus leans towards 'Buy', and the DCF analysis shows the stock to be potentially undervalued.

It should be noted that the featured recent news encapsulates several ongoing challenges for the company that could impact near-term stock performance negatively. But the company's commitment towards addressing these issues and refocusing on its growth strategy could yield positive results in the longer term.

Therefore, the final evaluation categorizes Disney (DIS) as a Hold for the short term, considering potential near-term market fluctuations and challenges, and a Buy for the long term, given its potential for recovery and growth.

Check full Disney forecast and analysis here.