The Star Wars Release Could Drive Disney Stock To Newer Highs

  • Disney acquired Lucasfilm, the owner of the star wars franchise in 2012.
  • The company is set to release the next Star Wars movie mid-December which is expected to rake in over $2 billion in ticket sales.
  • Strong topline growth accompanied by strong EPS growth, attractive valuations and Disney's strong management make Disney Stock a really attractive buy.

Walt Disney (NYSE:DIS) is all set to reap the benefits of its 2012 acquisition of Lucasfilm in the form of the first Star Wars release since the takeover. The upcoming 'Star Wars: The Force Awakens' also happens to be the first Star Wars release in over 30 years. With expectations for $2 billion in ticket sales, the financial impact on Disney could be significant.
DIS revenue chart

Source: Disney revenue chart by

A Company Backed By Strong Fundamentals

Disney is backed by strong fundamentals, which make Disney stock an attractive buy. The steady topline growth (around 7%) has led to an over 13 % growth in EPS for the first 9 months of 2015. This is a performance which has been achieved by while also keeping the leverage under control. The company has a debt-equity ratio of 0.33, which is significantly lower than the industry average of 0.58.

Disney Stock Has Outperformed in 2015

Disney stock returns have handily beaten the broader markets in 2015, having returned 26.8% (as of close on November 24 close price) in comparison to a 7.7% rise in the Nasdaq Composite (INDEX:COMPX) and a 1.34% move in the broader S&P 500 (INDEX:SPAL). These are returns excluding the over 1% dividend yield, which is another nice factor to hold Disney stock.

DIS stock chart

Source: Disney stock price data by


To sum up, Disney stock has the momentum going for it, having recently cut and risen over its 100 day moving average and currently sitting near its 52 week high. The strong fundamentals, attractive valuations, launch of a movie whose Fandom spans over 4 decades should propel the Disney Stock to newer highs, well above its 52 week high of $122, in the coming months.

Show Full Article
5 2
Is this article helpful ?    

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

show more

Comments on this article and DIS stock

Do share this awesome post