Walt Disney Company (NYSE: DIS) is experiencing a challenging year in 2023, marked by simultaneous labor disputes within the writing and acting sectors, as well as a lack of profitability in its streaming business. These difficulties come at a time when the company is commemorating its centennial year in business.
DIS stock is currently priced at $79.90, reflecting a year-to-date decline of -$9.07 (-10.19%). Over the past month, Disney’s stock has exhibited a notable trading range, fluctuating between $79.22 and $86.19, indicating a considerable degree of price variability.
At present, the stock is situated toward the lower end of this range. Furthermore, Disney’s shares have recently hit a fresh 52-week low, a concerning development that suggests a negative market sentiment. It is worth noting that Disney’s performance is trailing behind the S&P 500 Index, which is currently positioned within the midpoint of its 52-week trading range.
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For Disney, there exists a support zone spanning from $79.89 to $79.89, which is underpinned by a convergence of various trend lines across multiple timeframes. Conversely, there is a resistance zone extending from $82.41 to $84.87, shaped by the confluence of multiple trend lines and significant moving averages across various timeframes.
Analyzing recent market activity, it is noteworthy that Disney has experienced only 13 days of positive price movement out of the last 30 trading sessions, accounting for 43% of the observed period. This suggests a predominantly bearish sentiment surrounding the stock.
Disney outlook
The challenges faced by Disney seem to be formidable; nonetheless, the organization is exhibiting encouraging indications of progress. During its fiscal third quarter, which concluded on July 1, the company had a 4% increase in sales compared to the previous year, reaching a total of $22.3 billion. This growth can be attributed to the strong performance of the Disney parks, experiences, and products segment.
Disney is anticipated to demonstrate robust performance as it approaches its next financial reporting. The firm is projected to announce earnings per share (EPS) of $0.76, reflecting a significant increase of 153.33% compared to the same quarter of the previous year.
In the meantime, the Zacks Consensus Estimate for revenue indicates a projection of net sales amounting to $21.33 billion, reflecting a 5.83% increase compared to the same time in the previous year.
Upon examining the whole fiscal year, it is evident that the Zacks Consensus Estimates indicate that experts anticipate profits of $3.72 per share and sales amounting to $88.98 billion. The aforementioned figures would indicate increases of 5.38% and 7.57% correspondingly, in comparison to the previous year.
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