Investor Alert

Oct. 1, 2021, 6:28 a.m. EDT

Should You Buy the Dip in Disney Stock?

Oct 01, 2021 (Baystreet.ca via COMTEX) -- Disney (NYS:DIS) is a media and entertainment giant that has faced major challenges due to the COVID-19 pandemic. The crisis has forced the company to shift its strategy, especially when it pertains to the in-person entertainment it offers. Fortunately, rising vaccination rates have allowed a partial return to normal.

Shares of Disney have dropped 7.8% month-over-month as of close on September 30. This has pushed the stock into the red in the year-to-date period.

The company released its third-quarter 2021 results on August 12. Revenues rose to $17.0 billion compared to $11.7 billion in the prior year.

However, revenues for the first nine months are still down 4% compared to the same stretch of time in 2020. On the other hand, net income rose to $1.86 billion compared to a net loss of $2.12 billion in the previous year.

Parks and Experiences saw a big boost in revenues compared to the prior year as traffic enjoyed a big uptick over the spring and summer. Moreover, a return to the movie theatre across North America has brought back some of its box office swagger. It has made the decision to lean on cinemas rather than continue with the tactic of debuting new releases on its Disney+ streaming services.

Shares of Disney are trading in favourable territory in comparison to its industry peers. The stock last had an RSI of 35. That puts Disney just outside of technically oversold territory. Investors should be eager to jump on any violent dips that Disney suffers in the near term.


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