Disney Stock – Disney Q2 Expectations and How to Play the Stock –
Disney (DIS) has been on our watch-list as one of the top recovery plays amongst AMC as well as other stocks in the travel, leisure and entertainment space. Disney is expecting to release their Q2 earnings on Wednesday May 13th via a live audio webcast beginning at 4:30 p.m. ET / 1:30 p.m. PT. A pre-anticipatory run is possible; however, as of today May 10, 2021, we observed a fluctuation in the stocks share price between $184.84 and $186.97 then finally closing at $184.11 after hours.
Investors that have done their due diligence know that Disney has been struggling with the rapid surge in COVID-19 cases and their theme parks and resorts were forced to temporarily shut down as a result.
As mentioned in one of our previous reports, we aren’t very confident about Disney’s 2nd quarter performance, especially since their theme park resorts have only recently begun to reopen as the number of covid-19 vaccinations increase.
However there are some bullish factors to take into consideration. April’s job report showed that there was a significant increase in the leisure and hospitality job sector. This indicates that there may be a spike in demand. Also, Disney recently announced that their parks are now completely booked for their 50th anniversary.
This shows that people are getting more comfortable going out after getting their vaccines and this will only get better as more vaccinations continue to take place and as we make gradual steps toward the end of the pandemic. With the majority of Disney’s revenue coming from their parks this will be extremely good for the company.
Disney still has a lot of room to grow exponentially with parks all around the world getting up and running again.
Despite these factors, we still believe that Disney will not see any major improvements in their financial results until Q3’21 as that would give them ample time to make up for lost revenue from the reopening of their theme parks or perhaps even surpass pre-closure revenues.
Should you buy Disney stock right now?
From the first time we looked into the Disney stock back at the start of pandemic when we saw the giant fall, we initially thought of this as a long-term growth/recovery play and we still do.
Stocks like these are always worth the investment especially for a company like Disney that will always be around for generations to come.
Traders will always shop for value. This will be tricky, assuming Disney surpasses expectations we may see a bounce in the stock. Though if they miss, the stock might take a tumble and the bears will step in.
The logical thing to do is to wait after earnings when the stock starts to cool off. Even so, if you’re already invested, holding through earnings would be a smart idea, especially if you’re a long-term investor, which we believe is the best way to play this stock.
Disclosure: Cho Research was not compensated by Walt Disney to publish “Disney Q2 Expectations and How to Play the Stock? ”Though Cho Research does use the research dollars it generates from other clients of our research service to fund market research
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