The Walt Disney Company (NYSE:DIS) is a stock to watch, considering the announcement of a partnership with T-Mobile earlier in the week. The strategic move is among several that have been announced in the recent past.
Last week, the company announced another deal with Kidpik, cementing a strategy to find new growth areas. Fundamental analysis indicates a PEG ratio of 1.42 with an expected EPS growth of 22%.
The company has suffered in the last two years, with the pandemic causing the closure of amusement parks. With the world economy returning to near normalcy this year, the company is projected to bounce back to profitability.
Nonetheless, the world is watchful of the ongoing coronavirus restrictions in Shanghai, which resulted in another closure of Disney’s operations. Regulatory risk is also an emerging area of concern, with the recent LGBTQ protests against a Florida bill suggesting a not-so-amusing environment for Disney.
Disney finds support at $140
Source – TradingView
Disney has been bearish since March 2021. This week, the stock signals the beginning of bullish momentum, with MACD confirming the stock as a buy. Analysis of the price chart shows that the valuation of $140 currently on the market will be key reference support.
The price represents an important baseline from which Disney is expected to grow. On the upward trend, Disney will face resistance at $160, $180, and $200.
Summary
Disney has been on bearish momentum since March 2021 as the impact of the pandemic on the stock became clear. At a price of $140, the stock seems to have found a bottom from which it is set to pivot growth. Disney is a buy as growth is expected to exceed 22%.
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