Walt Disney Surpasses Market Gains, Eyes Earnings Release Amid Valuation Discount

Walt Disney's stock price ended at $122.21, a 1.99% increase from the previous day, outpacing the S&P 500's 0.54% gain. The company's earnings report is scheduled for August 6, 2025, with expected EPS of $1.47 and revenue of $23.7 billion. The Zacks Rank system rates Disney a #2 (Buy) stock, with a Forward P/E ratio of 20.74 and a PEG ratio of 1.75.

Walt Disney Co.'s (DIS) stock price ended the trading day at $122.21, marking a 1.99% increase from the previous day. This performance outpaced the S&P 500's 0.54% gain, indicating strong investor confidence in the company's prospects. The earnings report for the fiscal third quarter is scheduled for August 6, 2025, with analysts expecting earnings per share (EPS) of $1.47 and revenue of $23.7 billion [2].

UBS analysts have reiterated their 'Buy' rating on Disney's stock and raised their price target to $138 from $120, representing an approximate 16% upside from the current share price. The analysts expect resilient demand at Disney's parks and continued gains in direct-to-consumer (DTC) profitability, supporting a continuation of double-digit earnings growth. For the quarter, UBS projects EPS of $1.59, up 13% year-over-year, with full-year EPS reaching $5.89, representing 17% annual growth [2].

Revenue is expected to be $23.3 billion, up 1% year-over-year, and segment operating income of $4.75 billion, a 12% jump from the year-ago quarter. UBS expects solid growth in the Experiences segment, driven largely by domestic parks and new cruise capacity. Streaming strength, particularly Disney+, is projected to generate significant EBIT, with the company on track to surpass $1 billion in EBIT in fiscal 2025 [2].

Despite mixed results in the Entertainment segment, UBS remains optimistic about Disney's multi-year outlook. The analysts project EPS of $6.79 in fiscal 2026 and $8.00 in 2027, about 10% ahead of current Street expectations [2].

The Zacks Rank system rates Disney a #2 (Buy) stock, with a Forward P/E ratio of 20.74 and a PEG ratio of 1.75. The stock's performance and earnings expectations indicate strong investor sentiment and a positive outlook for the company's future financial performance.

References:
[1] https://www.cnn.com/markets/stocks/DIS
[2] https://www.proactiveinvestors.com/companies/news/1074871/disney-set-to-deliver-double-digit-earnings-growth-for-q3-1074871.html