Walt Disney (NYSE:DIS) stock has fallen 6% in just the past five trading days as the markets as a whole have been soft in recent days as concerns surrounding the coronavirus. The company has also had to temporarily close down Shanghai Disneyland due to the virus.
The stock closed at $135.90 on Monday and the last time Disney’s stock was around $130 in price was back in November. Disney has generally seen strong support at $130 and it’s unlikely the stock falls below that unless it reports a disappointing result when it releases its quarterly earnings next week.
The dip in price could make Disney a hot buy heading into earnings. It’s the company’s first quarter since it launched Disney+ in November ad we know that its numbers have been strong out of the gate. If the company does better than investors expect, it could get a boost right away.
With a price-to-earnings ratio of 20, Disney looks like a cheap stock to own given its new streaming service could unlock a lot of growth for the company.
With 17% sales growth in its most recent fiscal year, Disney is very attractively priced given that the company still has a lot of potential to continue growing its top line. If the stock continues to dip in the days leading up to its earnings report, it could be too hot of a buy to ignore.
For both the short and long term, Disney looks like it could be a steal of a deal after another dip in price on Monday.