Most readers would already be aware that Walt Disney's (NYSE:DIS) stock increased significantly by 5.8% over the past month. Despite this recent surge, the stock has had its fair share of ups and downs over the past few years, with setbacks due to COVID-19 and other macroeconomic factors. However, with the company's recent push to cut costs and a promising outlook for its streaming services, Disney may be a worthy investment for those looking to add to their portfolio.
Zacks.com users have recently been watching Disney (NYSE:DIS) quite a bit, indicating a growing interest in the company's stock. So, what are the facts that could determine the stock's future performance? One factor to consider is Disney's streaming services, which have seen significant growth in recent years. In fact, each of Disney's three streaming services has a clear target audience, according to analysts. Disney+ appeals to families with children, ESPN+ targets sports fans, and Hulu caters to a more adult-oriented audience. This diversified streaming strategy has helped to power the Dow's advance and may continue to drive growth for the company.
Another factor to consider when looking at Disney's future performance is its theme park business. With the recent announcement of new theme park rules and the return of Disney World annual passes for all, April is shaping up to be a promising month for the company's theme park business. Additionally, the company's push to cut costs, which will result in 7,000 job losses this year, may help to improve its bottom line.
Apple (AAPL -0.21%) and The Walt Disney Company (DIS -0.93%) make attractive investments as leaders in their respective industries. Both companies have strong brand recognition and a loyal customer base. However, Disney's recent struggles due to COVID-19 have put a damper on its performance, while Apple has continued to thrive despite the pandemic.
Despite these challenges, Disney CEO Bob Iger remains optimistic about the company's future. In a recent interview, he discussed how he is managing this very different phase of Disney's journey, where he gets advice, and whether he feels influential. He also acknowledged the challenges the company has faced due to the pandemic but expressed confidence in its ability to bounce back.
In terms of financial performance, Disney's revenue has been on a downward trend over the past year, but its earnings per share have remained relatively stable. The company's price-to-earnings ratio is currently around 84, which is higher than the industry average of 32. This may indicate that the stock is overvalued, but it could also be a sign of investors' confidence in the company's future growth potential.
In terms of analyst recommendations, the consensus rating for Disney's stock is a "buy." Of the 26 analysts covering the stock, 19 rate it as a "buy," five rate it as a "hold," and two rate it as a "sell." The average price target for the stock is $201.96, which represents a potential upside of around 97% from its current price of $102.51.
In summary, while Disney has faced its fair share of setbacks over the past few years, its recent push to cut costs and promising outlook for its streaming services and theme park business make it a potentially attractive investment for those looking to add to their portfolio. However, investors should still exercise caution and do their due diligence before making any investment decisions.
Ticker: DIS, AAPL
