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Why Disney Is Still 'Firing On All Cylinders'

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Why Disney Is Still '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.

Sarhan Capital CEO Adam Sarhan is bullish on Walt Disney Co (NYSE: DIS) in the intermediate and long term. On Tuesday, 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" with "lines out the door. Disney is a powerhouse."

Disney beat EPS estimates ($1.45 vs. $1.42), but missed slightly on revenue ($13.1 billion). Parks and Resorts revenue gained 4 percent to $4.1 billion.

Related Link: Disney Earnings Could Jolt These ETFs

In Wednesday's pre-market session, Disney shed more than 8.5 percent. As of Tuesday's closing price ($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."

Posted-In: Adam Sarhan Benzinga #PreMarket Prep Sarhan Capital Walt Disney Co.Long Ideas Exclusives Trading Ideas Best of Benzinga

 

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