Why Disney is 'Firing on All Cylinders'

Adam Sarhan was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

Sarhan Capital CEO Adam Sarhan is bullish on Walt Disney Co DIS in the intermediate and long term. Yesterday, before the company's earnings report, Sarhan said that he "wouldn't be surprised to see it pull back a little bit" since the stock was "extended."

He pointed to anecdotal personal evidence to suggest the theme park is doing well. He noted that he went to the Florida theme park in the past week. It was "packed," he argued, saying that "lines are out the door. Disney is a powerhouse."

In early premarket trading, Disney has shed more than 8 percent in premarket trading. It last changed hands at $111.55. As of Tuesday's closing price of $121.74, the stock was nearly 30 percent higher on the year. Since August 2011, the stock has steadily and consistently gained from a low below $30 per share to an all-time high at $122.08.

This gain is just the tip of the iceberg, according to Sarhan. The "intermediate and long-term picture remains very, very strong."