Walt Disney Company (NYSE: DIS) has long been a household name synonymous with entertainment, magic, and legacy.
Yet, its stock performance over the past few years has been anything but a fairy tale.
Now, with several key indicators pointing to a potential turnaround, analysts and investors are beginning to ask: Is this the perfect time to buy Disney stock?
A Rough Ride Followed by Signs of Recovery
Disney’s stock has faced significant headwinds since the onset of the COVID-19 pandemic. Theme park closures, disruptions to film releases, and a volatile streaming strategy all contributed to a prolonged slump.
But 2025 has brought renewed optimism.
In Q1 of 2025, Disney posted stronger-than-expected earnings, fueled by a resurgence in park attendance, improved profitability in its streaming segment, and cost-cutting measures that have begun to pay off.
The company’s stock, while still below its all-time highs, has shown a consistent upward trend, gaining nearly 15% year-to-date.
Streaming Strategy Finally Maturing
One of the biggest overhangs for Disney investors has been the company’s pivot to streaming.
Disney+ launched to fanfare but struggled with profitability as subscriber growth slowed and competition intensified.
In response, the company has streamlined its streaming services, integrated ESPN+ and Hulu content more effectively, and cracked down on password sharing—moves that mirror Netflix’s successful strategies.
In its latest earnings call, CEO Bob Iger announced that Disney+ had reached 180 million global subscribers, with the segment turning an operating profit for the first time since its launch. This marks a turning point for what many see as the future of Disney’s revenue model.
Theme Parks and Experiences Rebound Strongly
After years of pandemic-related disruptions, Disney’s parks and resorts division is booming. International locations such as Disneyland Paris and Shanghai Disney Resort have returned to full capacity, while domestic parks continue to see record demand.
The company is also investing in next-gen attractions and immersive experiences tied to franchises like Star Wars, Avatar, and Frozen.
According to Disney’s Q1 report, the parks and experiences division generated $9.2 billion in revenue, up 23% from the same period last year.
Intellectual Property and Box Office Strength
Disney’s intellectual property portfolio remains unmatched. Upcoming blockbuster releases from Marvel, Pixar, and Lucasfilm are expected to drive box office performance and ancillary revenues from merchandise, theme park tie-ins, and licensing.
The company’s recent release of The Incredibles 3 exceeded $1.1 billion in global box office revenue, and upcoming titles like Avengers: Legacy and Zootopia 2 are generating strong pre-release buzz.
Attractive Valuation and Dividends
From a financial perspective, Disney stock is currently trading at a forward price-to-earnings (P/E) ratio of 17—below its five-year average of 22.
This presents a compelling opportunity for value investors seeking growth at a reasonable price. Furthermore, Disney reinstated its dividend in late 2024, with plans to gradually increase payouts as free cash flow improves.
Analyst Sentiment Improving
Major financial institutions are taking notice. Goldman Sachs recently upgraded Disney to a “Buy” rating, citing the company’s successful restructuring and renewed growth across core segments.
Morgan Stanley echoed similar optimism, raising its 12-month price target to $130 per share.
While no investment comes without risks—such as economic slowdowns, content fatigue, or streaming competition—Disney appears to be regaining its magic.
For long-term investors looking for a mix of growth potential, brand strength, and diversified revenue, Disney stock may be entering its most attractive buying window in years.
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