Disney stock: buy or sell?
Dec 1st, 2020
Disney stock brief
- Disney closed on Tuesday at $149.44 after barely moving a 0.97%.
- UBS Group posted a neutral rating for Disney on Tuesday, targeting $155.00
- The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide.
Should I buy Disney stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $DIS stock a buy?
Currently, Disney stock matches one trading strategy:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that price doesn't struggle with upper resistances, and usually it rises rapidly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Disney can break to all-time highs any time soon, as it only needs to go up a 2.05%. Setup your buy order at $152.50 if you want to trade with this strategy. The stop loss would be set at $137.25
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$152.50||$137.25||10.00%|
Should I sell Disney stock?
"To sell or not to sell", if you are holding Disney stock?. As when we have to buy shares, determining when is appropiate to sell is not a haphazard decision, and we must use our own trading style. Our trading system selects very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies are not intended for selling short $DIS stock
A guiding principle is that you should never hold an open trade that results in losses greater than those expected by the time of the buy. When to sell shares should always be determined by the stop-loss (automatic or manual)
Is it time to sell Disney stock?
In the current situation of Disney there is not any eligible sell setup, so Disney stock holders with operations in green can keep their positions
In the last month, 10 brokerage ratings were published for Disney. General sentiment is bullish, with 6 out of 10 posting positive forecasts
|Nov 12th, 2020|
|Nov 13th, 2020|
|Bank of America|| |
|BMO Capital Markets||Neutral|
|JPMorgan Chase & Co.|| |
|Rosenblatt Securities|| |
|Royal Bank of Canada|
|The Goldman Sachs Group|| |
|Wells Fargo & Company||Neutral|
|Dec 1st, 2020|
Disney stock analysis
Supports and resistances
The current resistance levels are:
The current supports are:
Relative strength index
The RSI dropped below the overbought level of 70 last Wednesday after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Tuesday was 66.24. Since then, Disney shares slided a 1.35%
Disney stock price history
Disney started trading on Jan 2nd, 1962 at $0.06 per share1. Since then, DIS stock surged by 248,966.67%, with an average of 4,292.53% per year. If you had invested $1,000USD in Disney stock on the IPO, it would be valued $2,490,666.67 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Disney stock
Nobody knows how much a stock will be priced in the future. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price target based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial data by the company, and many times. Again, these predictions are not direct recommendations for individual traders and must not be followed blindly.
Averaging all price targets exposed below, the estimated price for Disney stock is $159.20. That is a 6.53% than the current price ($149.44).
|Brokerage firm||Price target|
|Nov 12th, 2020|
|Morgan Stanley||$135.00 → $160.00|
|Nov 13th, 2020|
|Bank of America||$146.00 → $166.00|
|Barclays||$135.00 → $150.00|
|BMO Capital Markets||$150.00 → $165.00|
|JPMorgan Chase & Co.||$155.00 → $160.00|
|Rosenblatt Securities||$145.00 → $155.00|
|Royal Bank of Canada||$124.00 → $170.00|
|The Goldman Sachs Group||$142.00 → $156.00|
|Wells Fargo & Company||$136.00 → $155.00|
|Dec 1st, 2020|
|UBS Group||$126.00 → $155.00|
Earnings and financials
Shareholders call was hosted by Disney ($DIS) in mid-November after posting the earnings report. Disney reported earnings of $-0.20 per share on revenue of $14.7 billion. The Wall St estimate was $-0.71 per share on revenue of $14.2 billion.In comparing, the EPS for the same quarter last year was $1.07, so posted EPS is a decrease of -118.69%. Revenue sank a -23.00% on an annualized basis in the , from $191.0B to $147.1B last quarter.
Disney ($DIS) is posting Q1 financial report next February. Wall Street forecasts of $-0.50, compared to previous quarter that was $-0.20.
Disney belongs to the Entertainment industry, which contain 28 industry peers.
Disney major competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|Liberty Broadband ($LBRDA)||$28.1B||Neutral||0|
|Liberty Media Corporation Series A Liber ($BATRA)||$1.2B||Neutral||0|
1 In the last 30 days.
To better understand Disney performance you must compare its gains with other related stocks in same sector or industry.. For Disney, the benchmark is made against Comcast, Netflix, Charter, Roku, Liberty Broadband and Liberty Media Corporation Series A Liber.
|Liberty Broadband ($LBRDA)||16.10%||13.90%||15.30%|
|Liberty Media Corporation Series A Liber ($BATRA)||21.40%||29.10%||11.30%|
Important note:The thoughts published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the particular scenarios of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are provided for informational purposes only
|Tuesday, December 1st, 2020|
|Day range||$149 - $151.4|
|Average true range||$5.48|
|50d mov avg||$130.33|
|100d mov avg||$128.36|
|200d mov avg||$119.35|
|Earnings date||February 2nd, 2021|