The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, Hulu, and Star+; sports-related entertainment services through ESPN, ESPN on ABC, ESPN+ DTC, and Star; sale/licensing of film and episodic content to third-party television and VOD services; theatrical, home entertainment, and music distribution services; DVD and Blu-ray discs, electronic home video licenses, and VOD rental services; staging and licensing of live entertainment events; and post-production services. In addition, the company operates theme parks and resorts comprising Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney, as well as Aulani, a Disney resort and spa in Hawaii. It also licenses its intellectual property to a third party for operations of the Tokyo Disney Resort; licenses trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games; operates a direct-to-home satellite distribution platform; sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The company was founded in 1923 and is based in Burbank, California.

Disney appears to be a mature business with stable revenue and earnings, but the market has already priced in a significant portion of the improvements. A P/E of 22.2 is above the industry median, while P/S and especially P/FCF are materially more expensive than the sector, which limits re-rating potential. At the same time, P/B is slightly below the median, and debt/equity of 0.33 looks comfortable and noticeably better than the industry backdrop, so the balance sheet is not a source of stress. The strength lies in the growth of absolute figures: revenue, EBITDA, operating profit, and net income remain at high levels, while equity and assets continue to expand. However, profitability quality has deteriorated: ROE, ROA, net margin, and gross margin are below industry benchmarks and noticeably weaker than in previous periods. This suggests that the scale of the business remains intact, but the efficiency of capital and sales monetization is not showing a convincing acceleration. Liquidity, by contrast, remains a weak point: the quick ratio and current ratio are below 1, which requires attention, although it is not critical for a large company. Dividend yield has risen to 0.78%, supporting shareholder returns, but on its own it does not offset the expensive valuation multiples. EPS and forward EPS trends are positive, confirming a recovery in earnings, but the pace of improvement no longer looks strong enough to justify aggressive upside. Overall, the fundamentals support a moderately cautious view: the business is high quality and profitable, but the valuation does not look cheap, and some of the operating efficiency remains under pressure. For an investor, this means that fair value should be slightly below the current operational target, with an emphasis on a conservative re-rating due to expensive sales and free cash flow.

Walt Disney Company (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, незначительно вырос

Disney has strong revenue and profit, but high P/E, P/S, and P/FCF ratios, weak liquidity, and declining profitability limit re-rating potential.

Key Points
Altria found a new profit source by using tobacco exports to unlock tax savings.
Kraft Heinz is betting Disney can help rebuild relevance for its aging food brands.
Both yields beat Treasuries, but remember, investors are accepting real business risks for that extra income.
The 30-year Treasury bond pays about 5.24% right now, which is a genuinely difficult number for dividend stocks to beat. It is also the highest that benchmark has been in years, well above its 10-year yield average of 4.74%, and it comes with a guarantee from the U.S. government that no company can match. Recently, the U.S. Treasury announced a larger-than-expected $6 billion buyback of longer-dated Treasuries, while Secretary Scott Bessent challenged this week's investors to bet against his yen strategy.
So when a consumer goods stock offers more, the honest question is not "Why is the yield so high?" but "What is the market afraid of, and is that fear correct?" Two consumer names clear the bar today. Each one is priced for something to go wrong. My read is that in two of the three cases, the market has the direction right and the magnitude wrong.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Altria pays 6.4% and just found money in the tax code
Altria Group (NYSE: MO) raised its quarterly dividend 4.7% to $1.11 a share in late August, marking the 61st increase in 57 years and putting the yield at about 6.4%. What interests me more than the raise is what came three days earlier. Philip Morris USA, an Altria operating company, entered a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International Inc., with first shipments expected in early 2027.
Reuters reporter Emma Rumney explained the mechanism as a rebate called the "double duty drawback" that lets U.S. tobacco companies that export products claw back federal excise taxes already paid on domestic sales. Altria makes Marlboro in the United States and sells it nowhere else, so building an export channel is a way to unlock a money source it previously could not touch.
That is a real, structural profit source that has nothing to do with selling more cigarettes to Americans, which matters because Americans keep buying fewer of them. The risk is unresolved: Njoy Ace, Altria's vaping product, has been off shelves since April 2025 after a patent ruling, and management still has not announced when it might return. A federal judge also rejected Altria's constitutional challenge to the trade commission's authority in early September. Buy this for the cash potential, not the transition.
2. Kraft Heinz yields 6.4% and rented Disney's imagination
The Kraft Heinz Company (NASDAQ: KHC) declared its regular $0.40 quarterly dividend in August, good for roughly 6.4%. The payout has been flat for years, and the payout ratio looks alarming on paper because of writedowns, so nobody should mistake this for a growth dividend.
What changed my thinking was July's multiyear alliance with The Walt Disney Company, putting 10 Kraft Heinz brands into Disney parks, cruise ships, studios, and streaming. Kraft Heinz chief executive Steve Cahillane, who took over in January, paused the planned company split and redirected roughly $700 million into brands instead.
Here is my actual stance. Shelf space is a shrinking asset for legacy food brands.Walk into many grocery stores, and you see condiments being rebranded as the store's own brand. Building condiment stations in a massive customer park is Kraft Heinz buying cultural relevance it can no longer generate on its own. This seems to me to be a safe bet on consistent volume for consistent product sales.
Both these companies are built around consistency and solid day-to-day products, and that matters when you're looking for income. But bonds offer consistency, too, so at these yields, the choice comes down to whether you want the certainty of Treasuries or the higher potential return of owning these companies.
Should you buy stock in Kraft Heinz right now?
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Kraft Heinz and Philip Morris International. The Motley Fool has a disclosure policy.

2 Dividend Stocks to Buy Now With Higher Yields Than the 30-Year U.S. Treasury Bond

Key Points
Netflix has always been a divisive stock for me.
But I think it looks attractive after pulling back more than 40% from its record high.
Over the past ten years, Netflix's (NASDAQ: NFLX) stock has rallied 670% and outperformed the S&P 500's (SNPINDEX: ^GSPC) 260% gain. I regularly covered Netflix throughout that decade, but I alternated between bullish and bearish positions. I also never bought the stock.
While I admired Netflix's evolution from a DVD rental company into a streaming video giant, I was concerned about its competitive threats, rising expenses, and high valuation. Today, I'll take a fresh look at those strengths and weaknesses to decide if it's a worthwhile investment.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why did Netflix pull back from its all-time high?
Netflix's stock closed at a record high of $133.91 per share on June 30, 2025. But as of this writing, it trades at about $77. Several changes and challenges caused that pullback.
For many years, investors tracked Netflix's growth by its subscriber count. But starting in the first quarter of 2025, Netflix stopped reporting those subscriber numbers. It claimed its overall subscriber numbers were becoming less relevant, since the introduction of its ad-supported and paid sharing plans changed the value of each subscriber. Netflix also plans to start disclosing its engagement and viewing hours just once a year (rather than twice) in 2027. Those jarring changes suggested that Netflix's high-growth days were over.
Netflix claims that its revenue, operating margin, and free cash flow (FCF) provide investors with a clearer picture of its overall growth. However, Netflix's year-over-year revenue growth decelerated over the past two quarters, while its FCF turned negative in its latest quarter.
Metric
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Revenue Growth (YOY)
15.9%
17.2%
17.6%
16.2%
13.4%
Operating Margin
34.1%
28.2%
24.5%
32.3%
33.4%
FCF Growth (YOY)
87%
21.3%
35.9%
91.4%
(32.7%)
Netflix expects its revenue to only rise 11.7% year over year in the third quarter. That slowdown can be attributed to the fading impact of its paid sharing plans, the saturation of its top markets (especially the U.S. and Canada), the slower-than-expected expansion of its ad-supported tiers, and a lack of new price hikes following its aggressive, multi-tier increases in 2024 and 2025.
Netflix also released more hit shows (Stranger Things, Squid Game, and Wednesday) and movies (K-Pop Demon Hunters) in 2025. Those tough year-over-year comparisons are exacerbating its slowdown, and its FCF is declining as it ramps up its spending on new content.
Another red flag was Netflix's attempt to buy Warner Bros. Discovery (NASDAQ: WBD) for $83 billion. Although it ultimately lost that bidding war to Paramount Skydance (NASDAQ: PSKY) in February (which boosted its first-quarter FCF with a $2.8 billion breakup fee), that bid indicated it was running out of room to grow organically. That's troubling because Netflix is often known for creating new hit IPs rather than acquiring existing ones.
Is Netflix still worth buying today?
From 2025 to 2028, analysts expect Netflix's revenue and EPS to grow at CAGRs of 12% and 22%, respectively. It isn't growing as rapidly as it did over the past decade, but it's still growing faster than traditional media companies like Paramount and Disney.
Netflix's stock also looks reasonably valued at 21 times next year's earnings. At its all-time high last October, it was trading at 37 times this year's earnings. That high valuation was unsustainable, since Netflix shouldn't be valued as a high-growth tech stock, but its current valuation seems fair for a higher-growth media company.
With over 300 million paid global members (as of the end of 2024), a growing content catalog, and the scale to generate stable profits from a capital-intensive business model, Netflix remains a solid long-term investment. It probably won't replicate its gains from the past decade over the next ten years, but it will remain a top play on the streaming media market.
Should you buy stock in Netflix right now?
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Is Netflix a Good Buy? After 10 Years of Covering NFLX, Here's My Honest Answer.

The Walt Disney Company (NYSE: DIS) has raised prices so significantly that it is upsetting longtime fans.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
*Stock prices used were the afternoon prices of Sept. 4, 2026. The video was published on Sept. 6, 2026.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Parkev Tatevosian, CFA has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Disney Stock Analysis: Is This Stock a Buy Despite the Negative Sentiment?

The Walt Disney Company DIS is expanding its parks pipeline to add capacity, strengthen guest spending and create a longer runway for Experiences growth. Disney is several years into its $60 billion, 10-year investment plan for Parks, Experiences and Products, with spending focused on theme park and resort expansion, new attractions and cruise capacity. The strategy is already showing results, as Experiences revenues increased 10% year over year in the fiscal third quarter of 2026, while operating income jumped 20%. The pipeline includes major attractions at Disney's U.S. parks, including Villains Land in Orlando and the Avengers Campus expansion in Anaheim, along with additional cruise capacity.
The expansion offers multiple avenues for growth. Domestic attendance increased 3% in the quarter, while per-capita guest spending rose 4%, showing Disney can benefit from both higher visitation and greater spending per visitor. New attractions and lands can also generate additional revenues from admissions, resorts, food and beverages, merchandise and other guest spending. Cruise expansion adds another capacity-driven growth opportunity within Experiences. Importantly, management expects attractive returns from the investment program, making execution and ROIC key measures for investors.
However, international attendance remains a key risk, particularly in Shanghai and Hong Kong, where weaker consumer conditions are weighing on demand. Large capital requirements are another concern, as the company expects fiscal 2026 capital expenditures of approximately $9 billion, primarily reflecting higher Experiences spending on parks, resorts and new attractions.
Overall, ongoing park expansion projects could accelerate Disney's long-term growth, provided the new capacity ensures a sufficient influx of visitors and spending to generate attractive returns on invested capital.
Competitors Challenging DIS in Theme Parks
Disney is facing competition as major U.S. operators expand their attractive facilities, invest in new experiences, and strive to build closer engagement with visitors.
Comcast CMCSA is strengthening its position in the theme park market through Universal’s expanding parks portfolio. Epic Universe continues to perform well, while Universal Kids Resort is open in Frisco and its U.K. park is moving toward construction. Comcast is pursuing long-term parks growth through attractive brands, locations and continued investment in attractions and experiences.
Six Flags Entertainment FUN is expanding its theme park offering through a growing pipeline of attractions and experiences. Its 2026 lineup includes multiple new attractions, while construction is underway on several 2027 projects. Six Flags is also broadening membership and cross-park visitation, aiming to increase guest engagement, repeat visits and long-term returns from its park investments.
DIS’s Price Performance, Valuation & Estimates
Disney shares have declined 7.5% year to date compared with a 9.7% drop in the Zacks Consumer Discretionary sector.
DIS’s YTD Price Performance
Disney trades at a forward 12-month P/S ratio of 1.72 compared to the Media Conglomerates industry's multiple of 1.24. DIS carries a Value Score of B.
DIS’s Valuation
The Zacks Consensus Estimate for DIS’ 2026 revenues is pegged at $101.38 billion, indicating 7.36% year-over-year growth. The consensus mark for earnings is pegged at $6.91 per share, indicating an upward revision over the past 30 days and indicating 16.53% year-over-year growth.
DIS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Disney Expands Its Parks Pipeline: Can it Boost Long-Term Growth?

Cancer Vaccines & Data Center Drama

Key Points
The Walt Disney Company remains a diversified powerhouse, leveraging world-class intellectual property across theme parks, streaming, and cruise lines.
Netflix continues to dominate the global streaming landscape with high net margins and a massive subscriber base exceeding 300 million members.
Which of these media giants is the better fit for your investment strategy in 2026?
As the entertainment landscape shifts from traditional cable to digital dominance, which media giant is the better addition to your portfolio? This comparison evaluates Walt Disney (NYSE:DIS) against Netflix (NASDAQ:NFLX).
Disney is a diversified entertainment giant that couples its streaming aspirations with a massive physical presence in theme parks. Netflix is the industry pioneer, focusing almost exclusively on digital content delivery and subscriber scale. Comparing these companies helps you decide between a legacy titan and a high-growth streaming leader.
The case for Walt Disney
The Walt Disney Company is one of the Big 6 media companies, with a portfolio that includes streaming, theme parks, and media networks. The company leverages its iconic intellectual property to drive revenue across Disney+ and its extensive vacation experiences. It maintains essential distribution agreements with multi-channel video providers.
In fiscal 2025 (ending in September), revenue reached nearly $94 billion, representing approximately 3% growth over the prior year. The company reported net income of roughly $12 billion, which was a significant increase from the $5 billion earned in fiscal 2024. This performance was supported by a net margin of nearly 13%, indicating improved bottom-line performance.
As of its September 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x. This ratio compares total debt to the value of shareholder equity, indicating that Disney carries a moderate amount of leverage relative to its ownership stake.
The current ratio is nearly 0.7x, which measures the company's ability to pay its short-term debts with current assets. Free cash flow for the year was roughly $10 billion, representing the cash remaining after the company covers its operating expenses and capital expenditures.
The case for Netflix
Netflix operates as a pure-play streaming service with over 300 million paid memberships in more than 190 countries as of early 2026. The company delivers content directly to consumers and, through partnerships with telecommunications operators, integrates its service into set-top boxes.
For 2025, revenue reached $45 billion, which marked an increase of nearly 16% year-over-year. The company reported net income of close to $11 billion, up from $8.7 billion in the previous fiscal year. Its net margin was approximately 24%, indicating a high level of efficiency in converting revenue into profit.
Based on its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.5x. This illustrates that for every dollar of equity, the company has fifty cents in total debt.
The current ratio is approximately 1.2x, indicating that current assets are sufficient to cover short-term liabilities. Free cash flow reached nearly $9.5 billion, representing the cash a company generates after accounting for cash outflows to support operations, including content production.
Risk profile comparison
Disney faces intense pressure from other streaming services and traditional media providers, which can impact subscription and advertising revenue. It also deals with high costs for sports programming rights and carries risks of inflationary pressure on production.
The company recently finalized a $50 million settlement to resolve antitrust claims arising from bundling practices that affected subscribers to live TV streaming services, such as FuboTV.
Netflix faces competition for consumer leisure time from a wide variety of sources, including video games and traditional broadcasters. The company also carries risks of operational disruption related to its reliance on third-party cloud infrastructure and potential content-related legal proceedings.
Valuation comparison
Netflix currently carries a higher price tag relative to its P/S ratio and Forward P/E based on future earnings estimates when compared to Disney.
Forward P/E
15.6x
22.9x
P/S ratio
2.0x
7.6x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
On almost every measure, Netflix looks like the stronger business and better stock to buy. It's growing revenue at double-digit rates, not only demonstrating stronger growth prospects but also showing that its strategy to maintain a healthy level of revenue per subscriber is working.
Netflix trades at a higher valuation multiple relative to sales and earnings, but that reflects a higher rate of growth and streaming profitability compared to Disney. For example, Disney+ is still operating at a single-digit operating margin, while Netflix reported a stellar 33% margin in the second quarter.
Moreover, the recent pullback in Netflix stock may offer investors a timely buying opportunity. The stock's forward P/E of about 23x is not asking much for a business that analysts expect to grow earnings over 20% annually in the coming years. On the same score, Wall Street analysts expect low-single-digit earnings growth from Disney.
The setup for Netflix looks more attractive for investors right now. Its scale, brand, and growth could deliver superior returns for investors.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,402,153!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool has a disclosure policy.

Walt Disney vs. Netflix: Which Media Stock Is a Better Buy in 2026?

A month has gone by since the last earnings report for Walt Disney (DIS). Shares have added about 2.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Disney due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for The Walt Disney Company before we dive into how investors and analysts have reacted as of late.
Disney Q3 Earnings Surpass Estimates, Revenues Increase Year Over Year
The Walt Disney Company reported third-quarter fiscal 2026 adjusted earnings of $2.06 per share, up 28% year over year, beating the Zacks Consensus Estimate of $1.88 by 9.6%.
Revenues of $25.25 billion rose 7% year over year, missing the consensus mark of $25.48 billion by 0.9%.
Strong growth in the Experiences business and a sharp improvement in the Entertainment segment supported earnings growth.
DIS Entertainment Segment Delivers Strong Profit Growth
Entertainment revenues (44.9% of total revenues) increased 6% year over year to $11.35 billion. Subscription and affiliate fees increased 12% to $7.55 billion, while advertising revenues declined 1% to $1.63 billion. Content sales revenues decreased 6% to $1.6 billion.
Entertainment segment operating income surged 64% year over year to $1.68 billion. The improvement reflected higher subscription and affiliate fee revenues, while total costs and expenses remained essentially flat as lower selling, general and administrative expenses offset increases in programming, technology and depreciation costs.
Disney Streaming Business Continues to Improve
Entertainment SVOD revenues increased 11% year over year to $5.53 billion. Subscription revenues rose 15% to $4.72 billion, while advertising revenues increased 3% to $851 million.
Entertainment SVOD operating income more than doubled to $712 million from $329 million in the year-ago quarter. Subscription revenue growth was driven by more subscribers, improved pricing and favorable foreign exchange. Disney also highlighted lower Disney+ churn, continued Hulu integration and plans to introduce additional membership features beginning in spring 2027.
DIS Sports Business Faces Cost Headwinds
Sports revenues (17.8% of total revenues) increased 4% year over year to $4.5 billion. Subscription and affiliate fees rose 8% to $3.14 billion, while advertising revenues increased 5% to $1.2 billion. Other revenues declined 41% due to the absence of Ultimate Fighting Championship pay-per-view revenues recorded in the prior-year quarter.
Sports segment operating income declined 17% year over year to $858 million. Higher contractual programming costs, new sports rights costs, the timing of NBA rights cost recognition under renewed contracts and increased sales and marketing expenses weighed on profitability. Management also cited early NBA playoff sweeps and a network carriage dispute as additional headwinds during the quarter.
Disney Experiences Business Leads Growth
Experiences revenues (39.5% of total revenues) increased 10% year over year to $9.97 billion. Segment operating income increased 20% year over year to $3.02 billion, making it the strongest-performing business during the quarter.
Domestic parks and experiences benefited from higher guest volumes, stronger per-capita spending and contributions from the expanded Disney Cruise Line fleet. Consumer Products revenues increased 7% year over year, supported by merchandise sales related to Toy Story 5 and Star Wars: The Mandalorian and Grogu. The company also recorded an approximately $100 million tariff refund, which contributed roughly four percentage points to Experiences operating income growth.
Balance Sheet and Cash Flow
As of June 27, 2026, cash and cash equivalents totaled $5.19 billion, down from $5.68 billion as of March 28, 2026. Current borrowings declined sequentially to $8.63 billion from $8.89 billion, while long-term borrowings decreased to $37.41 billion from $38.47 billion.
During the third quarter, cash provided by operating activities increased 33% year over year to $4.87 billion, while free cash flow increased 63% year over year to $3.07 billion.
Disney’s Q4 and Fiscal 2026 Outlook
For the fourth quarter of fiscal 2026, Disney expects total segment operating income of approximately $4.9 billion, including the benefit of the 53rd week. For fiscal 2026, the company reiterated adjusted earnings growth of approximately 12%, excluding the 53rd week, or approximately 16% including it. Disney also raised its fiscal 2026 share repurchase target to at least $9 billion from at least $8 billion and continues to expect double-digit adjusted earnings growth in fiscal 2027.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Disney has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Disney has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Disney belongs to the Zacks Media Conglomerates industry. Another stock from the same industry, Paramount Skydance (PSKY), has gained 21.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Paramount Skydance reported revenues of $6.91 billion in the last reported quarter, representing a year-over-year change of -3.9%. EPS of $0.18 for the same period compares with $0.29 a year ago.
Paramount Skydance is expected to post earnings of $0.22 per share for the current quarter, representing a year-over-year change of 0%. Over the last 30 days, the Zacks Consensus Estimate has changed +20.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Paramount Skydance. Also, the stock has a VGM Score of C.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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This article originally published on Zacks Investment Research (zacks.com).

Why Is Disney (DIS) Up 2.4% Since Last Earnings Report?

Disney DIS appears attractively valued, with its 12-month P/S ratio of 1.75X below the Consumer Discretionary sector average of 2.29X, the Media Conglomerates industry average of 1.87X and the S&P 500 average of 4.75X. This valuation discount suggests the stock may offer room for appreciation. DIS stock’s Value Score of B further supports its favorable valuation profile.
The valuation gap becomes more notable when compared with major competitors. Netflix NFLX, Amazon AMZN and Alphabet GOOG trade at a P/S ratio of 6.23X, 3.07X and 8.19X, respectively. Netflix competes with Disney+ in subscription streaming, Amazon competes through Prime Video and MGM’s content portfolio, while Alphabet’s YouTube competes for consumer attention and digital advertising.
Price/Sales Ratio (F-12M)
Disney’s lower valuation could indicate that investors are assigning a relatively modest premium to its broad entertainment ecosystem despite opportunities across streaming, content, sports and experiences. However, a low valuation alone does not make the stock attractive if growth and profitability fail to improve.
The earnings outlook provides another reason for optimism. The Zacks Consensus Estimate for Disney’s fiscal 2026 earnings is pegged at $6.91 per share, with estimates moving higher over both the past 30 and 60 days. The earnings estimate also implies 16.53% year-over-year growth, suggesting that improving fundamentals could provide additional support for the stock.
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The combination of discounted valuation and strong earnings growth makes Disney an interesting value-and-growth proposition. But with Netflix, Amazon and Alphabet continuing to compete for streaming audiences, advertising dollars and consumer engagement, the key question is whether Disney’s core business strength can deliver enough growth. Let’s take a closer look.
Strong Disney IP Creates a Powerful Business Flywheel
Disney's deep intellectual property (IP) portfolio remains a key long-term competitive advantage, as successful franchises can generate recurring revenues across theatrical releases, Disney+, consumer products, parks, cruises and gaming. In the third quarter of fiscal 2026, Toy Story is a clear example: its five films have generated more than $4 billion in global box office, over 2 billion Disney+ streaming hours and more than $1 billion in annual global retail sales, while the franchise spans four immersive lands, 19 attractions and two hotels. This diversification means even a weaker theatrical performance can still support other businesses through merchandise, streaming and experiences.
From a long-term investment perspective, Disney is increasingly seeking to extend the lifetime value of each franchise by connecting physical and digital experiences. Management plans to make Disney+ a broader ecosystem linking stories, games, merchandise and experiences, while new attractions and international expansions provide additional avenues for monetizing IP.
Since August 2026, Disney has reinforced this strategy through Disney Worldbuilders and its D23 Experiences showcase, highlighting upcoming franchise-based attractions and new lands globally. Disney has also expanded its gaming strategy, establishing gaming as a medium through which fans can get to know and engage with its characters and franchises.
Disney Experiences Offers Long-Term Growth Opportunity
Disney Experiences has established itself as an increasingly important driver of long-term growth and cash generation for DIS. For the first nine months, revenues reached $29.5 billion, up 8%, and operating income rose 10% to $8.9 billion. Growth is being supported by higher attendance, guest spending, hotel activity and cruise capacity, demonstrating Disney’s ability to monetize its highly differentiated physical experiences.
The longer-term opportunity is particularly compelling because Disney is expanding capacity while adding new attractions and experiences. Its pipeline includes Villains Land in Orlando, the Avengers Campus expansion in Anaheim and further Disney Cruise Line expansion, with the company targeting double-digit returns over the lifetime of these projects.
The key attraction lies in the combination of pricing power, capacity expansion and IP-driven demand. Domestic per capita guest spending rose 4% in the reported fiscal quarter, while global guests increased 4%, supporting the potential for sustained revenue growth as new attractions, resorts and ships come online. Disney’s largest-ever Experiences investment program therefore provides a multi-year runway for growth.
Disney’s International Parks Face Weakness
However, Disney’s international parks are currently a relative weak spot within the Experiences segment. In the third quarter of fiscal 2026, International Parks & Experiences operating income fell 13% to $369 million despite revenues increasing 6% to $1.79 billion. The pressure reflects continued softness in international attendance, with management specifically citing a weaker consumer environment in Shanghai and Hong Kong. International Park attendance was flat in the reported quarter, compared with 3% growth at domestic parks, while international per-capita guest spending increased 7%.
The concern is that weaker international demand can limit the earnings leverage from Disney’s global Experiences investments. Management said the weakness in Shanghai and Hong Kong continued into the fourth quarter of fiscal 2026, although it has moderated, while stronger domestic tourist and local-resident demand has helped offset the shortfall. Importantly, this weakness has had a more negative impact on the ‘Experiences’ business, which otherwise holds a very strong position. However, a prolonged slowdown could put pressure on attendance growth and returns on future international investments, making recovery in Asian consumer demand an important factor to watch for investors.
Disney Stock Lags the Broader Market
Disney’s shares have lost 9.2% over the past year compared with the broader Zacks sector, which fell 15.3%, and the industry, which declined 18%. However, the stock has significantly underperformed the S&P 500, which gained 19.6% during the same period. This relative underperformance highlights that investors remain cautious about Disney’s growth outlook despite its improving fundamentals and attractive valuation.
DIS’s One-Year Price Performance
Why Holding DIS Stock Makes Sense
Disney’s discounted valuation, powerful IP portfolio and strong Experiences business provide a solid foundation for long-term growth. While weakness in international parks and stock underperformance remain concerns, the company has multiple avenues for growth across streaming, content, parks, cruises and gaming. Given these strengths, investors should hold DIS stock now and position for potential gains as the company’s growth opportunities translate into stronger financial performance.
Disney stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

Disney Stock Is Trading at a Discount: Should You Buy, Sell or Hold?

(RTTNews) - As per Reuters, U.S. Federal Communications Commission has requested a Federal Court to dismiss the lawsuit against FCC filed by Disney. As per the agency, the case can proceed only in a appeals court. The hearing in the Federal Court is scheduled for October 6.
The FCC has been investigating The Walt Disney Company (DIS), its American Broadcasting Company, and its subsidiaries for compliance with its obligations as a licensed broadcaster. In April, the agency directed ABC to file license renewals for all of their licensed TV stations.

FCC Requests Federal Court To Dismiss Lawsuit Filed By Disney

Key Points
Amazon continues to lead the global e-commerce and cloud infrastructure markets through its diverse business segments.
Walt Disney leverages its iconic content library and expanding streaming presence to reach millions of global subscribers.
Which of these industry leaders offers the more compelling opportunity for your portfolio today?
As digital commerce and global entertainment landscapes evolve, investors weigh the massive scale of Amazon.com (NASDAQ:AMZN) against the storied intellectual property of Walt Disney (NYSE:DIS) for long-term growth.
Amazon focuses on operational efficiency and cloud dominance while Disney prioritizes content creation and physical experiences, such as theme parks. Both companies are navigating shifting consumer habits and technological advancements. This comparison helps you evaluate which business model aligns better with your investment goals in 2026.
The case for Amazon.com
Amazon operates a vast ecosystem ranging from its online marketplace to its high-margin Amazon Web Services (AWS) division. It serves a diverse group including individual consumers, third-party sellers, and government agencies. The company maintains significant relationships with shipping providers for its logistics, though it faces risks related to dependency on these third parties.
In its 2025 fiscal year (FY), revenue reached $716.9 billion, representing growth of 12.4% over the prior year. Net income for the period was $77.7 billion, resulting in a net margin of 10.8%. This growth reflects the continued expansion of its retail stocks footprint and cloud services.
As of its December 2025 balance sheet, the debt-to-equity ratio was 0.4x. This ratio measures total debt against shareholder equity, showing how much the company relies on borrowed money. The current ratio, which measures the ability to cover short-term obligations with current assets, was 1.1x. Free cash flow, which is cash from operations minus capital expenditures, was $7.7 billion.
The case for Walt Disney
Disney distributes entertainment through its studios, theme parks, and direct-to-consumer streaming services. By late 2025, the Disney+ service had 132 million paid subscribers. The company recently expanded its sports reach by acquiring the NFL Network and exited its partnership in A+E Global Media by selling its stake to Hearst in August of 2026.
In FY 2025, Disney reported revenue of $94.4 billion, which is a 3.4% increase from the prior year. Net income reached $12.4 billion, yielding a net margin of 13.1%. These figures suggest that the company is finding success in monetizing its vast catalog of characters and stories across multiple platforms.
According to its September 2025 balance sheet, the debt-to-equity ratio stands at 0.4x. Its current ratio was 0.7x, indicating that current assets were lower than current liabilities at that time. Free cash flow for the year was $10.1 billion, providing the company with capital to invest in new content and global park upgrades.
Risk profile comparison
Amazon faces intense competition in e-commerce from well-funded rivals like Walmart (NASDAQ:WMT). The company also deals with ongoing antitrust investigations regarding its marketplace operations, Prime service, and delivery contractor model. Additionally, expanding into international markets involves complex regulatory environments and high fulfillment costs that could impact results.
Disney is navigating a highly competitive media landscape where it must compete with other streaming services, such as NBCUniversal, owned by Comcast (NASDAQ:CMCSA). The company also faces litigation, including a civil negligence lawsuit and a class action settlement related to antitrust claims in streaming. Economic downturns remain a risk, as results depend heavily on consumer spending and tourism trends.
Valuation comparison
Disney currently trades at lower multiples relative to its sales and future earnings estimates than Amazon, suggesting a more conservative valuation.
Metric
Amazon.com
Walt Disney
Forward P/E
23.8x
14.2x
P/S ratio
3.9x
2.0x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
While Amazon is known as an e-commerce giant, it's also a competitor to Disney through its Prime Video streaming service. In fact, Amazon's service is larger than Disney's in terms of total subscribers, and it began broadcasting NBA games this year, further solidifying its position.
Yet, it's the retailer's AWS division that makes it stand out as the better investment in 2026, and warrants its stock's higher valuation compared to Disney. AWS is the world leader in cloud computing, and this position helps it capitalize on the artificial intelligence boom. AI systems are housed in the cloud, and customers are eagerly adopting Amazon's AI solutions, as demonstrated by AWS second-quarter revenue growing 37% year-over-year to $42.2 billion, the fastest growth in 18 quarters.
By contrast, Disney's highest-growing division was under its Experiences segment, which encompasses theme parks and cruises. This area saw 10% year-over-year sales growth to $10 billion in Disney's fiscal third quarter, ended June 27. The double-digit increase makes sense given the busy summer travel season. However, the entertainment titan doesn't have the massive AI tailwind at its back, and that gives Amazon the edge over Disney as the better stock to buy right now.
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Robert Izquierdo has positions in Amazon, Comcast, Walmart, and Walt Disney. The Motley Fool has positions in and recommends Amazon, Walmart, and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.

Indicator	TTM Median
P/E	22.22 16.68
Price/Sales	1.94 1.00
P/B	1.47 1.55
P/FCF	24.28 10.80

Indicator	TTM Median
ROE	7.47 13.39
ROA	4.25 5.10
ROI	7.44 7.42
Net Worth	170.56 0.66
Quick Ratio	0.65 0.90
Current Ratio	0.71 1.14

Indicator	TTM Median
Net Profit Margin	8.70 9.86
Operating Margin	13.66 14.35
Gross Margin	37.60 55.03
Return on tangible equity	27.56 26.06

Indicator	TTM Median
EPS	2.06 0.31
EPS Forecast	1.88 0.25
Revenue	25.25B 82.50M
Gross Profit	9.27B —
EBITDA	6.23B —

Walt Disney Company (The)

Recent quarterly and TTM performance

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