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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
Jan 2020MaintainsBuy
Nov 2019MaintainsBuy
Nov 2019Initiates Coverage OnOverweight

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
TSCOPiper SandlerMaintains119.0
UNPBMO CapitalMaintains200.0
UNPArgus ResearchMaintains205.0
ISRGJP MorganMaintains665.0
EHTHRBC CapitalMaintains132.0
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