After years of underwhelming performance, Disney stock (DIS) is finally casting spells again, climbing to fresh 52-week highs and outperforming the broader market. But can the rally keep going, or is the pixie dust wearing off?
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Disney’s Run Is Worth Applauding
Since the start of 2024, Disney shares have surged 35%. That beats the S&P 500 by a lot. And this time, it’s not about just one blockbuster or a flashy park opening. It’s a whole-company comeback story that’s quietly building momentum.
Theme parks are showing strength. Streaming has flipped from red to black faster than expected. And after years of burning cash in content and tech, Disney’s bottom line is finally starting to catch up.
Even with box office fumbles like Elio and the Snow White reboot, Disney still managed to produce more than half of the top five U.S. theatrical hits this year. Meanwhile, a new park in Abu Dhabi is in the works—with someone else footing the bill.
Disney’s Streaming Turns a Corner
Disney+ becoming profitable wasn’t supposed to happen this soon. But here we are. With Hulu now fully under Disney’s control, bundling across platforms gets easier. That’s exactly what the Street wants to see: consolidation, efficiency, and margin expansion.
Operating profit is up 50% year over year, and earnings from continuing operations have nearly tripled. This is clear proof that Disney’s financial engine is firing on all cylinders.
Analyst Bullishness on Disney Stock Builds
Guggenheim just bumped its price target from $120 to $140, citing strong parks performance, sports advertising tailwinds, and easing pressure on Disney’s aging TV business. Analyst Michael Morris also raised his operating income estimate slightly, another sign that Wall Street is slowly warming up to the turnaround.
It’s not just him. Momentum across the board is pulling bullish sentiment higher.
However, at $122, Disney is trading at nearly 20 times forward earnings. That’s not cheap. But given recent beats, three out of four quarters have crushed expectations, it may not matter.
Is Disney Stock Still a Buy?
Disney stock is currently rated a Strong Buy on TipRanks. Of the 19 analysts who have issued ratings in the past three months, 15 say Buy, four rate it Hold, and none recommend Sell. The average 12-month DIS price target sits at $126.29, implying a 3% upside from the current price of $122.34.
While that forecast reflects a stock already near its highs, the consensus suggests analysts still see room for Disney to climb higher, especially if its earnings momentum and streaming strength continue.
