Analytical Review of the Stocks of Walt Disney Company as of 27.05.2016
Analytical Review of the Stocks of Walt Disney Company as of 27.05.2016
The Walt Disney Company, #DIS [NYSE]
Services, Entertainments, USA
Financial performance of the company:
Index – DJIA, S&P 500;
Beta – 1.40;
Capitalization – 151.56 В;
Return on asset - 9.60%;
Income - 8.38 B;
Average volume – 10.31 М;
P/E - 18.37;
ATR – 2.67.
Analytical review:
- The company ranks the first on capitalization in the sector of “Entertainments” among the issuers traded in the American stock market;
- According to the last company’s report, net profit in Q2 of the fiscal year 2016 has grown by 10.5% to 1.36 USD per share. The rise in Walt Disney Company’s revenue exceeded 4%. However, results of the company were lower than expected by the market, due to which the price of the issuer has dropped by 7%;
- The Multipliers highlighted high efficiency of the company’s management. The company has the best equity return and investment return compared with the closest rivals and generally in the industry. Return on investments is 13.87%. Return on equity is over 25%. In the industry these indices are 11.06% and 14.43% respectively. The P/E Ratio also suggests that the company is underestimated. P/E Ratio amounts to 8.37, which is below average P/E in the industry (22.06) and in the sector (24.59). This indicates the possibility of further growth of quotations of the company;
- Over 60% of the company’s shares belong to Institutional investors. Most part of the shares belongs to Vanguard Group (5.38%) and State Street Corporation (4.00%);
- Large investors and banks (Guggenheim, RBC Capital, Pivotal Research Group) predict the rise in quotes of the company up to 120 USD.
Summary:
- Company’s report for Q2 of the fiscal year 2016 showed high efficiency of the company’s management. Despite pressure from the strong USD the company’s revenue and net profit have grown.
- Large investors believe in positive dynamics of the company’s shares.
- It is likely that in the near future company’s quotes will go up.
Trading tips for CFD of Walt Disney Company.
Key levels:
Support levels: 101.50 USD and 99.85 USD.
Resistance levels: 102.75 USD and 105.65 USD.
Medium-term trading, Н1
At the moment the issuer is traded in the demand zone of 99.30-100.05 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 102.00 USD, 104.50 USD and 106.5 USD with the use of trailing stop.
Medium-term trading, Н1
Short-term trading М15
At the moment, the issuer is traded between the local support and resistance levels of 99.50/100.75 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened towards the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.
Short-term trading М15
