Carter Worth On Whether Disney Can Get Its Magic Back

On CNBC's "Options Action," Carter Worth said Walt Disney Co DIS does “really need to get its magic back.”

The company’s shares have lagged the S&P 500 as well as any travel, cruise or resort related stocks, he said.

Worth gave examples of the year-to-date performance of some stocks. For instance, Expedia Group Inc EXPE is up 37%, Hilton Hotels Corporation HLT has gained 35%, American Airlines Group Inc AAL is up 36%, Royal Caribbean Cruises Ltd RCL has risen 28%, Marriott International Inc MAR has gained 26%, Hyatt Hotels Corp H has risen 23%, and Booking Holdings BKNG is up 17%. Disney is down 3% in the same period.

Disney has underperformed hospitality, hotel, and cruise as a sector for around 10 months, Worth said. “The thinking is that we’re going to get a bounce,” he commented. The stock could go to $185 on an earnings beat, he added.