The Walt Disney Company Faces Challenge Amid Market Gains
Burbank, California-based The Walt Disney Company (DIS) operates as an entertainment entity on a global scale. With a market valuation of $190.5 billion, Disney’s operations encompass media networks, parks and resorts, studio entertainment, consumer products, and interactive media.
Over the past year, Disney shares have notably lagged behind the broader market. While DIS has made modest gains, the S&P 500 Index ($SPX) has surged approximately 8.6%. For 2025, DIS shares are down 4.9%, contrasting with the SPX’s 3.8% decline thus far this year.
Comparing more closely, DIS’s underperformance appears even sharper against the Communication Services Select Sector SPDR ETF (XLC), which has risen about 19% over the previous year. Notably, the ETF’s slight year-to-date gains overshadow DIS’s single-digit losses during the same period.
On May 7, DIS shares increased by 10.8% after the company announced its Q2 results. Its adjusted earnings per share (EPS) of $1.45 surpassed Wall Street’s expectations of $1.18. Additionally, Disney’s revenue reached $23.6 billion, exceeding forecasts of $23.1 billion. The company anticipates full-year adjusted EPS to be $5.75.
For the current fiscal year ending in September, analysts project EPS growth of 15.9% to $5.76 on a diluted basis. Disney’s history of delivering earnings surprises is noteworthy, having surpassed consensus estimates in each of the last four quarters.
Among the 29 analysts covering DIS, the consensus rating is a “Strong Buy,” comprising 21 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This assessment is slightly more favorable than a month prior, which had 20 analysts recommending a “Strong Buy.”
On May 8, Needham analyst Laura Martin reaffirmed a “Buy” rating for DIS and set a price target of $125, indicating a potential upside of 18% from current levels. The average price target of $126.19 suggests a 19.1% premium relative to DIS’s current pricing, while the highest target of $147 indicates an impressive 38.8% upside possibility.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
