Disney's Next Big Move: What Investors Are Watching

Disney is set to release its fiscal fourth-quarter earnings, and investors are keeping a close eye on a few key areas. The company's shares have lagged behind the broader market this year, but there's still hope for growth. Analysts are particularly interested in the performance of Disney's experiences unit and the continued expansion of its streaming services. In the previous quarter, Disney's earnings exceeded expectations, thanks to strong streaming growth and increased spending at its theme parks. However, revenue fell short of forecasts. Looking ahead, analysts are optimistic about Disney's projected earnings growth for fiscal years 2025 and 2026. The consensus price target for Disney shares is $134. 58, suggesting a potential 16% upside. Several analysts have weighed in on Disney's prospects. Laurent Yoon from Bernstein sees Disney stock as a good buying opportunity for value-oriented investors, noting that shares are trading at a significant discount to the broader market. Despite some complex factors, Yoon believes Disney's underlying earnings power remains solid. Wells Fargo analyst Steven Cahall is also bullish on Disney, particularly its experiences business. He expects this sector to be a major driver of growth in the medium term. Morgan Stanley shares this optimism, highlighting the potential for artificial intelligence to boost demand for premium live experiences. Bank of America sees Disney's experiences business as a key driver of stock performance, with new cruise ships and park growth expected to contribute to this growth. Evercore ISI analyst Kutgun Maral anticipates double-digit adjusted earnings per share growth for fiscal years 2026 and 2027, driven by profitability across various segments.