The Walt Disney Co (NYSE: DIS) stock has been on a tear the past six months. The stock has returned over 50% to investors, as CEO Bob Iger's turnaround plans take the desired effect. So far in 2024, it's up over 32.50%.
Disney stock momentum is due to several catalysts, including:
- The company's strong financial performance in the first quarter of its fiscal year, exceeding analysts' expectations in both profit and revenue.
- The success of Disney+ amid the pandemic positioned Disney competitively in the streaming market.
- Progress in the company's turnaround efforts under the experienced leadership of Iger.
- Positive reception from shareholders following an earnings beat and strategic deals, despite activist pressure for board changes.
Disney's Recovery Through Strategic Initiatives
The company, under the aegis of Iger, is focused on recovery through strategic initiatives, particularly in streaming profitability. Despite the competition, Disney aims to achieve profitability in streaming by implementing cost-saving measures.
Additionally, the company reaffirms its commitment to returning shareholder value by reinstating dividends and launching a $3 billion buyback program.
This strategic direction has fueled investor confidence, leading to Disney's stock rallying to 52-week highs despite economic uncertainties, signaling optimism in its turnaround plan.
We looked at the price chart for technical validation of the optimism surrounding Disney's turnaround plan.
Disney Stock Price Chart Validates Bullish Sentiment
Technical analysis of Disney's price chart indicates an overall bullish sentiment as well.
Disney's stock trades well above its 20 and 50-day simple moving averages (SMAs) at $116.22 and $109.66, respectively, indicating bullish momentum.
However, the stock at $119.35 is just below its 50-day SMA at $121.01.
Supporting positive trading volume should help alleviate any concerns posed by the 50-day SMA.
Bollinger Bands analysis shows the price trading within the upper band - a signal of bullish momentum surrounding the stock.
Disney stock has its fundamentals being fueled by turnaround momentum and technicals signaling a positive and bullish trading environment.
How Iger delivers on his turnaround plans could make or break investor expectations with Disney stock.