Sign InSummary
The Walt Disney Company (DIS) stock closed at 88.64 USD on July 7, 2023, with technical indicators suggesting it is in the oversold territory, potentially signaling a future increase in stock price, but recent news of low attendance at theme parks may affect revenue streams, making it advisable to wait for the earnings announcement on August 9, 2023, before making investment decisions.
Technical Analysis
The Walt Disney Company (DIS) closed the trading day of July 07, 2023, at 88.64 USD, a slight decrease of -0.11%. The stock traded between 88.08 USD and 89.73 USD during the updated trading day. The stock volume was 13.48 million shares compared to the average volume of 12.76 million shares.
In terms of technical indicators, the DIS stock has an RSI14 of 28, indicating it is in the oversold territory which might signal a potential future increase in stock price, given its condition. The MACD (3-month) is -0.395, further supporting the bearish short term trend that DIS is currently experiencing. It's clear that the stock is currently trading below its 50-day Moving Average (92.73) and 200-day Moving Average (97.03), indicating a negative trend.
Fundamental Analysis
The Walt Disney Company has a market capitalization of $160.99 billion and approximately 1.83 billion shares performing out in the open market showcasing the firm's size in the market. With a reported earnings per share (EPS) of 2.24 and a PE ratio of 39.33, Disney's earnings have been supporting its present valuation.
In contrast, several unsettling news stories have emerged recently about The Walt Disney Company. Namely, reports of unusually low attendance at Disney theme parks stemming from high ticket prices and more enticing discount offers. This news could potentially affect revenue streams from park attendance and merchandise sales. On a more positive note, the movie segment seems to be doing well, with the latest 'Insidious' franchise having a successful opening weekend.
The company's earnings announcement is scheduled for August 09, 2023, which could give us more perspective on the company's financial health depending on the results reported.
Price Prediction
The discounted cash flow (DCF) for Disney stands at 94.46 USD, offering a potential upside given the stock's last close of 88.64 USD. On the other side, analysts' target highs and lows for DIS stock stand at 263 USD and 105 USD respectively, with a consensus at 159.07 USD, which is a significant upside from the current trading value.
Final Evaluation
Taking both the technical and fundamental factors into account, and considering the news factors and the DCF and target prices, DIS stock seems like a potential 'Hold.' It is currently trading below its fair valuation, and its technical indicators propose that it could potentially rebound soon. However, given the worrying recent news regarding its theme parks, it would be wise to await the company's earnings announcement on August 09, 2023, to gain further insight into the company's financial circumstances and future prospects before making any definitive investment decisions.
