Sign InDisney's technical indicators, EPS assessments, and management changes predict a bearish trend.
Summary
As of June 20, 2023, Disney's technical indicators suggest a bearish trend with the stock currently trading below its moving averages, and its high PE ratio valuation appears relatively high, while recent news of management changes may impact short-term performance, leading analysts to categorize it as a Hold.
Technical Analysis
The Walt Disney Company (DIS) closed at $89.75 on June 20, 2023, a decrease of $3.19 (-3.43%). The stock reached a high and low of $90.78 and $89.74, respectively, with a volume of 12.83 million shares, above its average volume of 11.83 million shares. The company currently has a market capitalization of $162.20 billion.
The RSI14 stands at 58, indicating that the stock is neither overbought nor oversold. The stock currently trades below both its 50-day moving average of $95.28 and the 200-day moving average of $98.41, showing a bearish trend. The MACD (3-month) is at -1.37, also suggesting a negative momentum.
Fundamental Analysis
Disney has an EPS of $2.21, giving it a PE ratio of 40.17. Considering the industry's average PE ratio, Disney's valuation appears relatively high. There are 1.83 billion shares outstanding for the company. The next trading day for DIS is on June 21, 2023, and its earnings announcement is expected on August 8, 2023. The discounted cash flow (DCF) for the stock is $95.12. The target high, target low, target consensus, and target median are 263, 105, 159.07, and 151, respectively, based on analyst projections.
Recent News and Predictions
Recent news reports confirm that Disney's chief diversity officer, Latondra Newton, is stepping down after six years with the company. Additionally, hit television writer and producer Ryan Murphy is reportedly planning to leave Netflix and join Disney. These management changes may influence the company's performance in the short term.
Considering the stock's technical indicators and recent news, we predict that DIS will close at a lower price on the next trading day, June 21, 2023. Given the current bearish trend, we also expect the stock price to be lower in the upcoming week.
Final Evaluation
Based on the technical and fundamental analysis, along with recent news, we categorize The Walt Disney Company (DIS) as a Hold. The stock is trading below its moving averages and has a high PE ratio. However, the RSI14 indicates that it is not overbought or oversold. With the upcoming management changes and potential for future growth in entertainment, it is best to wait and analyze how these developments will impact the company's stock price before making any investment decisions.
