I think Mickey Mouse has a cold. That is because it appears the market is keeping their distance.
Sure, the prime earnings of the ESPN arm of the business are currently challenged. Did really you think you could buy something for nothing?
This is the perfect time to look for strong companies who the market has lost their interest in. This too will pass. When the market is moving so high, as it has been lately, everyone just wants the "sexy", high growth stocks..As a result, some solid companies get left in the bargin bin. Do you really think that Bob Igor is just going to go "gently into the night"?
To start with, Disney's P/E is at the low end of its range for the last 10 years. Revenues in 2017 stalled a little (55,137 vs 55,632). Unfortunately, the only 45 degree trend line you'll ever see was probably in stats class in a regression line. Life doesn't work that way. Free cash flow has improved year over year since 2011.
Disney deserves a good hard look. When the music stops, you want to make sure you have a sturdy chair to land on.
