The media and entertainment group could quickly regain its upward trend.
The company is supported by strong fundamentals and qualitative Surperformance ratings. The group shows an interesting profitability profile with net margin at 13.6% for 2013, up 50% since 2009 while revenues grew of 25% on the same period. Thomson-Reuters analysts estimate its EPS will rise of 35% by 2015 reaching USD 4.57 from 3.38 last year. Moreover, the stock is supported by a strong buying consensus.
On a technical viewpoint, the stock is in a consolidation phase since early march, but the upward momentum could quickly bring back the stock near its USD 83.35 resistance.
On March 24th, the company entered a deal to buy Maker Studios, one of Youtubes largest networks for UDS 500 million. This acquisition makes Disney a major online video distributor and will help the group to draw more teenagers into the Disney productions by increasing its online presence.
Active investors could take a bullish position at the current price aiming firstly at the USD 83.35 resistance and then at USD 85 corresponding to the trend line. A stop loss will be placed at USD 78.5 indicating a more significant consolidation.