Can Disney Stock Keep Rising After Hitting a New 52-Week High?
Key Takeaways
The media giant shares are up 35% since the start of last year. It's putting the magic back in the kingdom.
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June 28, 2025
07:15 AM
The Motley Fool
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The media giant s are up 35% since the start of last year
It's putting the magic back in the kingdom
Some upticks sneak up on you
S of Walt Disney (DIS 0. 77%) notched a fresh 52-week high on Thursday and again on Friday this week
This s the media giant scoring a 23% jump last year, matching the S&P 500's return after falling short in each of the three previous years
The media giant is actually winning so far in 2025
Disney stock's 11% ascent this year heading into the weekend may not seem a lot, but it's more than double the S&P 500's comparable 5% gain
Bears may be surprised to see Disney outperforming the market over the past year and a half, given its uninspiring top-line growth and some recent misses on high-file theatrical releases
Reality is kinder than the negative narrative
Let's take a closer look at how Disney is overcoming its near-term challenges while thriving in the new normal. 18 months of pixie dust Disney s are up more than 35% since the start of last year, and that's not including the modest dividend that it reinstated at the start of fiscal 2024 and has already hiked twice
Trailing revenue has only risen 6% from where it was six quarters ago
Disney also has had a few misfires at the multiples this year
The rising s may not seem to match the fundamentals, but there are a lot of neat things happening at the House of Mouse outside of those two knocks
Fiscal 2024 was a breakthrough for Disney
It reversed a disappointing 2023 at the box office by landing last year's three highest-grossing movies worldwide
Disney+ and the rest of the company's ing operations turned fitable halfway through the year, earlier than expected
Generating positive net income after sporting massive losses has done wonders for the bottom line
Disney's trailing operating fit has increased 50% since the end of fiscal 2023, with earnings from continuing operations soaring nearly threefold in that time
Disney has seen disappointing ticket sales for its Snow White -action reboot and Pixar's computer-animated Elio in 2025, but they haven't all been theatrical duds
The studio has put out more than half of this country's top five releases this year
Disney also posted blowout quarterly results in May, silencing any potential bearish rumblings
On the theme park front, Disney's domestic operations surprised Wall Street with a strong showing in its
There was also the bar-raising news of a new Disney-licensed theme park being built in Abu Dhabi, bankrolled by the developer
This is a different kind of Disney coasting now, and Wall Street is starting to pay attention
Rising tides The analyst to grow rosier on Disney is Guggenheim
Analyst Michael Morris boosted its price target on the s from $120 to $140
He's sticking to his bullish buy rating on the s, and with the s now above $120, it makes sense for a positive revision
Guggenheim's analyst points out that the refreshing strength for Disney's experiences segment -- along with a favorable sports advertising forecast and encouraging operating expense outlook for the fading linear networks -- should more than offset the studio stumbles
Morris is boosting his segment operating income jection from $17. 6 billion to $17. 7 billion for the current quarter that ends this week
He also welcomes Disney's move to finally take full control of Hulu, as it can now take advantage of the segment's fitability to make a stronger apach to seamlessly bundling its direct-to-consumer ing platforms
Disney stock may not seem cheap
It's trading for almost 20 times Wall Street's fit target for the new fiscal year that starts in three months
However, those earnings estimates have been inching higher since Disney's strong quarter, and that report wasn't an outlier
Disney has posted double-digit percentage beats on the bottom line in all but one of its past four quarters
Momentum is on Disney's side
It has a mising slate of multiplex releases in the second half of this calendar year
As long as the global economy doesn't become the Disney villain, Disney should continue to enjoy its dominant market position
The stock may be trading at a new 52-week high, but this doesn't mean that it's all downhill from here
Rick Munarriz has positions in Walt Disney
The Motley Fool has positions in and recommends Walt Disney
The Motley Fool has a disclosure policy.
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