Long Trade Idea
Enter your long position between $103.75 (the intra-day low of its last bullish candlestick) and $104.99 (yesterday’s intra-day high).
Market Index Analysis
- The Walt Disney Company (DIS) is a member of the Dow Jones Industrial Average, the S&P 100, and the S&P 500 indices.
- All three indices are retreating from all-time highs with rising bearish trading volumes.
- The Bull Bear Power Indicator of the S&P 500 is bearish with a descending trendline.
Market Sentiment Analysis
Equity markets turned lower yesterday as earnings rolled in, AI-related earnings failed to validate the massive rally, and fears that AI tools would replace software and related jobs mounted. PayPal plunged following its earnings release, but Walmart became the latest member in the $1 trillion club, driven by value-seeking consumers. Gold and silver jumped as bottom hunters stepped in. AMD sold off in after-hours despite upbeat earnings and an improved outlook, while Chipotle also extended its losses. The four-day partial government shutdown ended, and all eyes are on Alphabet’s earnings today.
The Walt Disney Company Fundamental Analysis
The Walt Disney Company is a mass media and entertainment conglomerate, a leader in the animation industry, and operates the largest television and film studio in Hollywood.
So, why am I bullish on DIS after its post-earnings sell-off?
Revenues of $25.98 billion and earnings per share of $1.63 beat expectations of $25.74 billion and $1.57, respectively. Still, investors dumped shares amid concerns about profits, challenges in its streaming division, and leadership changes. I am bullish about its experience division, which delivered over $10 billion in operating income in 2025, a new milestone for DIS. I am equally bullish on its box office hits and IP monetization, while its strategic AI partnerships should deliver results in 2026.
Metric | Value | Verdict |
P/E Ratio | 15.33 | Bullish |
P/B Ratio | 1.70 | Bullish |
PEG Ratio | 4.93 | Bearish |
Current Ratio | 0.67 | Bearish |
ROIC-WACC Ratio | Negative | Bearish |
The price-to-earning (P/E) ratio of 15.33 makes DIS an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 29.65.
The average analyst price target for DIS is $130.45. This suggests excellent upside potential with acceptable downside risks.
The Walt Disney Company Technical Analysis
Today’s DIS Signal
- The DIS D1 chart shows price action inside a horizontal support zone.
- It also shows price action between the descending 50.0% and 61.8% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is extremely bearish, hinting at a bearish washout.
- The average bullish trading volumes are higher than the average bearish trading volumes.
- DIS corrected more than the S&P 500 Index, a bearish signal, but bullish catalysts dominate the narrative.
My DIS Long Stock Trade
- DIS Entry Level: Between $103.75 and $104.99
- DIS Take Profit: Between $124.69 and $131.64
- DIS Stop Loss: Between $93.79 and $95.70
- Risk/Reward Ratio: 2.10
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