Disney stock: buy or sell

DIS stock price: $173.70 -2.60% At close on May 14th, 2021

Updated on:
May 17th, 2021

1

Disney stock brief

  • Disney stock dropped -2.60% to close at $173.70 on the stock market last Friday.
  • The selloff with high volume last Friday looks like buyers have stepped in to stop further loses by increasing demand. Coming sessions will tell if this high volume was enough to revert the selloff
  • Disney presented its financial report last Thursday
  • The price is currently under the lower Bollinger band, which is usually an indicator of a short-term bounce that you better not try to trade
  • Royal Bank of Canada, Sanford C. Bernstein and The Goldman Sachs Group published strong positive ratings for Disney last Friday, with an average forecast of $193.33
  • The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide.

Should I buy Disney stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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 doesn't match any of these trading strategies, so our recommendation is not to buy now. 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?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid rash decisions based on our personal emotions or the noise that surrounds the market. Our trading system selects very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies are not intended for shorting Disney stock

As a golden rule, you should never mantain an open trade that generates higher than expected losses by the time of purchase. When 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 hold Disney stock and your operation is in profit probably is not time to sell now

Disney ratings

In the last month, 7 analyst ratings were published for Disney. General sentiment is bullish, with 6 out of 7 publishing optimistic forecasts

Disney analysts' ratings - Last 30 days
Brokerage firmRating
Apr 20th, 2021
Wells Fargo & Company Buy
Apr 22nd, 2021
Truist Securities Strong buy
Apr 26th, 2021
Wells Fargo & Company Buy
May 12th, 2021
Morgan Stanley Buy
May 14th, 2021
Royal Bank of Canada Strong buy
Sanford C. Bernstein Neutral
The Goldman Sachs Group NeutralStrong buy

Disney stock analysis

SMAs overview

DIS stock SMAs chart

Supports and resistances

The current resistances are:

  • R1: $181.01 (4.21% above)
  • R2: $183.40 (5.58% above)
  • R3: $191.67 (10.35% above)
  • The current support levels are:

  • S1: $160.52 (-7.59% below)
  • S2: $152.50 (-12.20% below)
  • S3: $148.65 (-14.42% below)
  • Bollinger bands

    The evolution of the Bollinger Bands on the chart proves that they are fairly narrow (less than 5%), which clearly means that price volatility is low. The narrowness of the Bollinger bands is often a indication of a sharp price movement (up or down), so we must be careful and manage our buy or sell orders correctly

    DIS stock Bollinger Bands chart

    Relative strength index

    Broke down the 30 level last Friday, with a value of 29.72. Crossing down below the level of 30 is not a buy sign, as stock price can be below the level of 30 for many weeks and may continue to decline

    DIS stock RSI chart

    Disney stock price history

    Disney went public priced at an adjusted price1 of $0.06 on Jan 1962. Since then, DIS stock surged by 289,400.00%, with an average of 4,905.08% per year. An investment of thousand dollars on the IPO would worth $2,895,000.00 today.

    1: Adjusted price after possible price splits or reverse-splits

    DIS stock price history chart

    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 published every day by banks, financial institutions and independent analysts.

    The following table shows the price predictions published by brokerage institutions for the last 30 days. Again, these targets are not direct recommendations for small traders and should not be trusted blindly.

    Averaging all price targets exposed below, the predicted price for Disney stock is $204.71. Disney closed at $173.70 last Friday, that is a 15.15% than the forecasted price.

    Disney stock price predictions
    Brokerage firmPrice target
    Apr 20th, 2021
    Wells Fargo & Company $201.00$219.00
    Apr 22nd, 2021
    Truist Securities $195.00$205.00
    Apr 26th, 2021
    Wells Fargo & Company $201.00$219.00
    May 12th, 2021
    Morgan Stanley $200.00$210.00
    May 14th, 2021
    Royal Bank of Canada $202.00
    Sanford C. Bernstein $163.00
    The Goldman Sachs Group $225.00$215.00

    Earnings and financials

    Last Thursday, The Walt Disney Company ($DIS) posted adjusted EPS for that highly enhanced Market expectations. Quarterly EPS was $0.79 per share versus the estimated $0.27. This Q2 report means an earnings surprise of 192.59%. On the contrary, reported sales were $15.6 billion, in line with the market estimates.

    In contrast, the EPS for the same quarter last year was $0.60, so reported EPS is a improvement of 31.67%. Turnover collapsed a -13.47% on an annualized basis in the , from $180.4B to $156.1B last quarter.

    Disney ($DIS) will host the quarterly earnings call next August. Wall Street expects of $0.67, compared to previous quarter that made $0.79.

    Disney competitors

    Disney is part of the Telecommunications sector and the Entertainment industry, where it has industry peers.

    Disney most relevant competitors are:

    Disney competitors
    CompanyMarket capRatingBullish ratings1
    Disney ($DIS) $354.1B Strong buy 6
    Comcast ($CMCSA) $254.0B Buy 7
    Discovery ($DISCA) $27.9B Neutral 0
    Pearson (PSO) $8.6B Buy 1
    AMC Networks (AMCX) $3.3B Neutral 0

    1 In the last 30 days.

    Disney performance

    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, Discovery, Pearson and AMC Networks.

    DIS performance compared
    Company1m3m6m
    Disney ($DIS) -7.40% -7.30% 27.40%
    Comcast ($CMCSA) 6.70% 11.20% 24.30%
    Discovery ($DISCA) -6.10% -25.80% 58.70%
    Pearson (PSO) 7.70% 15.10% 56.90%
    AMC Networks (AMCX) -6.00% -0.80% 94.20%

    Please read:
    The thoughts given in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not know the specific situations 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 Thoughts are posted for education motives only

    Disney summary

    Friday, May 14th, 2021
    Open$172.93
    Close$173.7
    Day range$168.78 - $174.91
    Previous close$178.34
    Session gain-2.60%
    Average true range$4.20
    50d mov avg$187.44
    100d mov avg$183.86
    200d mov avg$159.00
    Earnings dateAugust 3rd, 2021

    Frequently asked questions

    What is Disney stock symbol?

    The Walt Disney Company is a public company trading in the US stock market with the DIS symbol

    Is Disney stock a buy or sell?

    Disney received 7 ratings in the last 30 days: 6 bullish, 0 bearish and 1 neutral.

    Will DIS go up?

    Disney had different price forecasts published by market analysts in the last month setting the target price to $204.71. That is a 17.85% than the current price ($173.70).