{"id":307304,"date":"2019-10-27T20:24:21","date_gmt":"2019-10-28T00:24:21","guid":{"rendered":"https:\/\/financhill.com\/blog\/?p=307304"},"modified":"2022-03-10T18:20:49","modified_gmt":"2022-03-10T23:20:49","slug":"disney-stock-forecast","status":"publish","type":"post","link":"https:\/\/financhill.com\/blog\/investing\/disney-stock-forecast","title":{"rendered":"Disney Stock Forecast: Is It A Buy?"},"content":{"rendered":"

Disney Stock Forecast:<\/em> When Walt Disney first drew his signature character 90 years ago, he could not have imagined the span of the Disney empire<\/a> today.<\/p>\n

Mickey Mouse is one of the most recognized faces in the world, and his iconic ears have been incorporated into products ranging from designer fashion to household d\u00e9cor.<\/p>\n

Disney films are some of the most popular in history, and the organization is frequently included on lists of most powerful brands and most reputable companies.<\/p>\n

Investors rely on Disney shares to add stability to their portfolios. Though Disney has the same ups and downs of any large organization, over time, it has produced steady value.<\/p>\n

However, new technologies and disruptive digital entertainment is changing the industry at a rapid rate \u2013 and Disney stock has slumped in recent years.<\/p>\n

Some investors and analysts wonder whether Disney [NYSE: DIS<\/a>]<\/strong> will continue to be a reliable success in an increasingly digital world.<\/p>\n

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How Disney Makes Money<\/b><\/h2>\n

Disney movies and related merchandising are infused into American culture, and Disney characters can be found on everything from cereal boxes to Pez dispensers.<\/p>\n

Based on the visibility of its blockbuster movies, it\u2019s easy to assume that this is where the lion\u2019s share of company revenue is produced.<\/p>\n

However, the truth is that Disney\u2019s television programming has been the true driver of strong revenues for decades. Parks and resorts are in second place, and studio entertainment is a distant third.<\/p>\n

Disney-owned channels extend far beyond the kid-focused Disney Channel<\/a>.<\/p>\n

The company has a strong presence in broadcast through its ownership of ABC<\/a>, and the biggest money-maker it owns on cable is ESPN<\/a>.<\/p>\n

However, consumer needs are evolving. Where packaged cable services were once the only option, advances in technology have opened up a variety of choices for those who can live without ESPN.<\/p>\n

The introduction of streaming services and other cable-tv alternatives presents a significant challenge to Disney\u2019s long-term success.<\/p>\n

Is Disney Stock Undervalued?<\/b><\/h2>\n

Before calculating whether Disney stock is undervalued, it\u2019s important to look at what the company is doing to meet the challenges presented by streaming services.<\/p>\n

First, it has taken a fresh look at opportunities available in the non-network-media areas of the company. For example, it has capitalized on the growth potential of its theme parks.<\/p>\n

Disney<\/a> [NYSE: DIS<\/a>]<\/strong> is exploring international expansion, and it has restructured pricing in US parks to increase revenues and maximize profits.<\/p>\n

Second, Disney [NYSE: DIS<\/a>]<\/strong> continues to focus on creating high-quality studio entertainment, which translates into future gains.<\/p>\n

On movie ticketing giant Fandango\u2019s<\/a> list of top 10 most-anticipated movies for 2019, upcoming Disney films fill seven spots.<\/p>\n

Popular movies draw visitors to theme parks, create markets for new lines of themed merchandise, and offer opportunities for continued revenue through television and streaming services. For example, the opening of Star Wars: Galaxy’s Edge<\/a><\/i> \u2013 Star Wars-themed areas of the US Disney parks \u2013 is sure to bring in crowds and profits.<\/p>\n

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