Disney Stock Falls Into a Correction, but Goldman Sachs Calls It Highly Compelling
Key takeaways
- Disney’s stock is in a correction but remains a compelling buy for those who see strong earnings growth and a low valuation.
- Disney stock fell 11% from its year‑high
- Year‑high of $111.91 on August 24
- Experiences revenue $9.97 billion (+10%)
What happened
Disney (DIS) stock has slipped into a correction, falling more than 11% from its year‑high of $111.91 reached on August 24. The decline follows a broader market pullback and investor concerns about Disney’s growth trajectory. Despite the drop, analysts remain upbeat, citing strong earnings momentum and a low valuation relative to peers.
Why it matters
The correction reflects market pressure on Disney’s valuation, yet the company’s recent earnings beat and robust revenue growth in key segments suggest upside potential. The move also signals that Disney’s theme parks, sports, and streaming businesses are performing well enough to support a multi‑year earnings…
Short-term and longer-term
Short-term. Over the next few days, watch the 50‑day EMA and Supertrend for confirmation of a reversal.
Longer-term. For the next few months, Disney’s strong earnings growth and low forward P/E suggest a favorable long‑term case.