Overextended Losses Create Buying Opportunity For Walt Disney Co (DIS) Investors

Overall, it appears Disney’s losses are overextended and for investors, now is an opportune time to buy this leading entertainment company. The stock is down on the previous quarter’s slight revenue miss and has also fallen below its fair value of $118 given the market’s extreme selloff in recent weeks.

Both of these factors are going to correct in the near-term to the benefit of Disney. The Fed has opened a marginal trading window for investors after allowing more time for the economy to regain balance before affecting Fed policy that would increase interest rates. Furthermore, Disney’s sales initiatives have it positioned for a strong final quarter of the year which should lead to annual revenue growth of at least 7.4% further supporting its superior revenue generating abilities in the industry.

Disclosure: The author has no positions in Disney or other securities mentioned in the article.