The Walt Disney Co (NYSE: DIS) is a reopening stock that will likely do well this summer, says Jessica Inskip; she’s the Director of Education and Product at OptionsPlay.
Inskip explains her bullish call on CNBC
Inskip is convinced the entertainment conglomerate will continue to recover a 30% year-to-date decline in its stock price over the summer. On CNBC’s “Closing Bell: Overtime”, she said:
For the summer, I expect a huge surge [in attendance at Disney Theme Parks] from Cruise Lines, and that in pace of summer travel. So, that, from a fundamental perspective, will definitely help with earnings and growing Disney.
Earlier this month, Disney reported weaker-than-expected results for its fiscal Q2, but said per capita spending at its Parks was up more than 40% versus the 2019 levels.
Why else is she bullish on the Disney stock?
According to Inskip, indicators also suggest a “trend reversal to the upside”. The upcoming release of “Star Wars” was among other reasons why she’s bullish on the Walt Disney Co.
The mass media company also remained strong on the streaming front in its latest reported quarter. It added 7.9 million subscribers to Disney+ in a quarter that saw rival Netflix lose 200,000.
Wall Street also rates the stock at “overweight” with upside to $152 on average. DIS trades at a price-to-earnings ratio of 75.42 at present.
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