Disney's Consolidation Set-Up for a Multi-Year Upside

about 1 month ago

Josh

"All right, I have to talk to you about a stock that I've been doing a lot of charting on that's been a sleeper. It's been down for a long time. I think it would fall under the category of underdog and it's time to look at Disney stock again. Now, Disney fell because their cable business, their Disney cable business had been shrinking faster than they could get into the Disney Plus subscription business. And so they were getting squeezed as well as the fact that Disney Plus was going to mean them having to spend a lot more money to build a different type of content. And so the stock fell dramatically off of its all-time highs. And it had an extremely solid track record of largely increasing year-over-year over the course of decades to this huge pullback. And now we've done something that I think it's worth noting is we have largely consolidated in a very specific price range for the last three years, and they're beginning to slowly build their earnings and showing some strength. I personally believe this will be the last pullback before this goes on a multi-year secular run all the way back up to 150, 160, and 170. It has consolidated long enough. Most of the bearish concern has been processed and now the risk is on the bears and the bulls might have the upper hand."

The speaker provides a detailed commentary on Disney (DIS), noting that the stock has been down due to issues with its cable business and the costs associated with Disney Plus, but now appears to have consolidated over the past three years. He indicates that this consolidation may set up a strong secular move, with the stock potentially moving up to the 150-175 range if it breaks above key resistance at 125. A breakdown below 100 would trigger a downside move, but overall, the commentary is bullish with long-term potential, especially as it appears in top stock picks for 2026.

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