Should You Buy Disney Stock Before Aug. 5?
Key Points
Disney's stock is down more than 40% in the past five years.
The company's Experiences division is the company's most resilient and was previously led by new CEO Josh D'Amaro.
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The Walt Disney Company (NYSE: DIS), under the leadership of new CEO Josh D'Amaro, is due to report its third-quarter 2026 earnings on Aug. 5. The entertainment company could use some good news, as the stock has fallen more than 15% this year and over 45% in the past five years.
Disney has struggled to find its footing under pressure from its expensive streaming business, corporate layoffs, and patent injunctions in the EU. Consumers are also tightening their belts as inflation and fuel prices remain high. This could hurt Disney if customers cut streaming subscriptions and limit travel this year to save money.
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Wall Street, though, is largely optimistic. Analysts' consensus has Disney priced around $128 per share. It's currently nearly $30 below that as of July 29. The bullish case for Disney relies on continued growth and expansion with theme parks, resorts, and cruises. Disney+ and Hulu's combined profitability and growth from recent price hikes could boost the stock. There's also been talk that Disney could exit the streaming business altogether and instead focus on licensing its media.
Image source: The Motley Fool.
Disney is attractively priced right now. D'Amaro is a longtime Disney leader who transformed the Experiences division into the company's most resilient. I certainly believe he is the right person to help Disney turnaround. It could be a rough ride in the short term as Disney navigates a few tricky landscapes, but in the long term, there's a lot of potential upside if the entertainment giant gets its streaming strategy right.
The Disney turnaround strategy isn't going to happen overnight. So while it is a buy for the long term, it would also make sense to wait and see if August's earnings report shows D'Amaro does indeed have the company on the right track.
Should you buy stock in Walt Disney right now?
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Catie Hogan has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.
