Disney stock: buy or sell
Mar 2nd, 2021
Disney stock brief
- Disney skyrocketed a 3.14% after hitting new highs last Wednesday
- Citigroup published a strong bullish rating for Disney last Thursday, targeting $230.00
- On February 19 broke out above its latest top at $183.40
- 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?
In the current situation of Disney there is not any eligible buy setup. This doesn't mean $DIS will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Disney stock?
"To sell or not to sell", if you are holding Disney shares?. Similarly to when we have to buy shares, determining when is appropiate to sell is not a fickle decision, and we must follow our own trading style. Our trading system selects very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups are not intended for selling short $DIS stock
As a rule of thumb, you should not hold a trading operation that produces greater losses than those expected at the time of purchase. The timing to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Disney stock?
Currently, Disney stock doesn't match any of our preferred sell setups, so if you own Disney stock and your operation is in profit probably is not time to sell now
In the last 30 days, 13 brokerage ratings were published for Disney. General sentiment is bullish, with 10 out of 13 posting optimistic outlooks
|Feb 12th, 2021|
|Bank of America|| |
|Credit Suisse Group||Buy|
|JPMorgan Chase & Co.||Buy|
|Rosenblatt Securities|| |
|Sanford C. Bernstein||Neutral|
|The Goldman Sachs Group|| |
|Feb 16th, 2021|
|Deutsche Bank Aktiengesellschaft|| |
|Feb 17th, 2021|
|UBS Group|| |
|Feb 25th, 2021|
Disney stock analysis
Disney stock started an uptrend in October 2020, and gained an amazing 66.32%. Rising peaks and troughs can be seen easily on a chart and how price offered very few buy points on the breakouts. Latest pullback was last January, when price bounced at $160.52. Disney broke out above $183.40 (its last top) on February 19. That breakout was a good entry point
$DIS at Highs
Last Wednesday, Disney reached new all-time highs (ATH) again at $200.60
Supports and resistances
Price is at all-time highs and there are not upper resistances.
The current support levels are:
The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last January after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Monday was 62.33
Disney stock price history
Disney IPO was on Jan 2nd, 1962 at $0.06 per share1. Since then, DIS stock surged by 324,866.67%, with an average of 5,506.21% per year. If you had invested $1,000USD in Disney stock on the IPO, it would be valued $3,249,666.67 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Disney stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
The following table shows the price predictions released by financial institutions in the last 30 days. Again, these estimates are not direct recommendations for individual investors and should not be followed blindly.
Averaging all price targets exposed below, the predicted price for Disney stock is $214.38. Disney closed at $194.98 on Monday, so the target price is expecting an increase by 9.95%.
|Brokerage firm||Price target|
|Feb 12th, 2021|
|Bank of America||$223.00|
|Credit Suisse Group||$192.00 → $218.00|
|Evercore ISI||$200.00 → $210.00|
|JPMorgan Chase & Co.||$210.00 → $220.00|
|KeyCorp||$182.00 → $225.00|
|Loop Capital||$190.00 → $230.00|
|Rosenblatt Securities||$210.00 → $220.00|
|Sanford C. Bernstein||$124.00|
|The Goldman Sachs Group||$211.00 → $225.00|
|Feb 16th, 2021|
|Deutsche Bank Aktiengesellschaft||$185.00 → $222.00|
|Feb 17th, 2021|
|Argus||$200.00 → $225.00|
|UBS Group||$200.00 → $215.00|
|Feb 25th, 2021|
|Citigroup||$205.00 → $230.00|
Earnings and financials
In mid-February, Disney ($DIS) had the financial event and posted the report. Disney topped consensus earnings estimates and posted of $0.32, that is a 178.05% increase versus the previous estimates of $-0.41. However, reported sales of $16.2 billion were in line with analysts forecasts.By comparison, the EPS for the same quarter last year was $1.53, so posted EPS means a decrease of -79.08%. Revenue dropped a -22.10% on an annualized basis in the , from $208.6B to $162.5B last quarter.
Disney ($DIS) will host the earnings call next May. Estimated for this quarter is $0.27, compared to $0.32 that was reported for Q1.
Disney belongs to the Telecommunications sector and the Entertainment industry, which contain industry peers.
Disney major competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|Disney ($DIS)||$357.8B|| ||10|
|AMC Networks (AMCX)||$2.7B||Neutral||0|
1 In the last 30 days.
To better understand Disney stock performance you must compare its gains with other related stocks in same sector or industry.. For Disney, the benchmark is made against Discovery and AMC Networks.
|AMC Networks (AMCX)||24.10%||97.60%||162.00%|
Important: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 document does not have any knowledge of the specific circumstances of the reader, his or her own 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 Opinions are posted for education reasons only
|Monday, March 1st, 2021|
|Day range||$191.39 - $196.9|
|Average true range||$7.58|
|50d mov avg||$178.93|
|100d mov avg||$158.16|
|200d mov avg||$140.15|
|Earnings date||May 4th, 2021|