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Should Investors Buy Disney's Hot Streak?

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Should Investors Buy Disney's Hot Streak?

Walt Disney Co (NYSE: DIS) shares hit a new 52-week high of $114.68 Thursday after moving higher in each of the past nine trading sessions — the Mouse's longest winning streak in five years.

Should investors buy the momentum? One Street analyst made the case for more upside during a CNBC "Trading Nation" segment.

The Analyst

Susquehanna Financial Group's Stacey Gilbert discussed Disney stock and the options market.

The Thesis

In the near-term, it appears Disney will emerge victorious over Comcast Corporation (NASDAQ: CMCSA) to buy most of Twenty-First Century Fox Inc (NASDAQ: FOXA)'s assets, Gilbert said during the CNBC segment. This catalyst is being interpreted by the market as a sign of continued bullish sentiment for the stock, she said. 

The options market is also sending a clear bullish signal, Gilbert said: Options investors are buying upside calls and aren't looking at just one maturity, but rather "several of them," with the focus being around the $120 strike. This would support an upside case for Disney's stock as high as $140 to $145, she said. 

Investors looking to profit from expectations of continued momentum in Disney's stock may want to consider buying one call option and selling a higher call strike to minimize potential volatility risk, the analyst said.

Price Action

Shares of Disney were trading lower by 0.39 percent at the time of publication Friday. 

Related Links:

Imperial Capital Takes Neutral Stance On Disney, Tackles Pros, Cons Of A Twenty-First Century Fox Deal

'Convergence' Is Key: Credit Suisse Weighs In On The Telecom And Media Sector

Latest Ratings for DIS

DateFirmActionFromTo
Aug 2019UpgradesNeutralOutperform
Jun 2019DowngradesOutperformIn-Line
Jun 2019MaintainsOverweight

View More Analyst Ratings for DIS
View the Latest Analyst Ratings

Posted-In: CNBC Susquehanna Financial Group Trading NationAnalyst Color Analyst Ratings Media Best of Benzinga

 

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StockFirmActionPT
XELMaintains60.0
SOMaintains54.0
SREMaintains141.0
EXCMaintains56.0
ESMaintains77.0
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