In 2024, Walt Disney (NYSE:DIS) investors have experienced a rollercoaster ride with the company’s stock. After a promising start to the year with shares trading 37% higher at one point in March, Disney was the best year-to-date performer among the 30 components of the Dow Jones Industrial Average. However, the momentum did not last, and Disney’s stock is now trading just 6% higher, trailing behind the major market averages once again.
Despite the recent setbacks, there is still hope for a fairy-tale finish for Disney shares in the second half of the year. Analysts project modest revenue growth of 3% for the fiscal year ending in September, with a more promising 5% growth expected in fiscal 2025. On the bottom line, Wall Street experts anticipate a 26% increase in profitability this year, followed by another year of double-digit gains.
One of the key drivers of Disney’s potential resurgence is its streaming business, led by Disney+. The streaming service surprised investors with an operating profit in the latest quarter, signaling a turnaround from previous losses. With a strong slate of movie releases lined up for the second half of the year, including Marvel’s “Deadpool & Wolverine,” Disney’s box office performance is poised for a comeback.
The proxy battle that concluded at April’s shareholder meeting brought some uncertainty to Disney’s future. The company made strategic moves, such as announcing a 50% dividend hike, to appease activists and maintain shareholder confidence. Looking ahead to August, Disney’s fiscal third-quarter results will be a key event for investors. The company has prepared shareholders for challenges in the streaming business and theme parks in the June quarter but expects a return to profitability in the following report.
In addition to financial updates, Disney will host the D23 event for theme park fans, where new experiences are expected to be announced. The release of “Alien: Romulus” will also generate buzz as it breathes new life into the iconic sci-fi horror franchise. With Disney shares trading below $100 and lagging behind the market, there is potential for the company to reclaim its leadership position among entertainment stocks.
As the second half of 2024 unfolds, investors should keep an eye on Disney’s performance and upcoming developments. With positive expectations for revenue growth, profitability, and exciting new releases, Disney may be on track for a happily ever after ending to the year. It’s time for Disney to shine once again in the market and deliver a fairy-tale finish for its shareholders.
Source: https://www.fool.com/investing/2024/07/22/will-disney-stock-really-lose-to-the-market-for-th/
Footnotes:
– https://www.fool.com/investing/2024/05/07/3-reasons-why-disney-is-the-hottest-dow-stock-in-2/
– https://www.fool.com/investing/2024/06/25/is-animation-saving-the-multiplex-for-investors/
– https://www.fool.com/investing/2024/05/30/did-nelson-peltz-win-the-disney-proxy-battle/
– https://www.fool.com/investing/stock-market/market-sectors/communication/entertainment-stocks/