Disney Gets Fox's Blessings
21st Century Fox has accepted Walt Disney Co.’s offer to acquire its entertainment assets.
The $71.3 billion deal marks one of the biggest mergers ever in the U.S. entertainment industry. Disney, however, still needs to get the regulatory nod from several international jurisdictions including China and European Union for the deal to actually materialize. Disney has already agreed to divest Fox’s 22 regional sports networks that compete with its own ESPN, and therefore fulfilled the U.S. Justice Department’s condition for the acquisition’s approval.
Disney’s first bid for Fox's assets came in December at $52.4 billion. But that was followed by Comcast Corp.’s $65 billion offer - which in turn spurred Disney’s counter-bid of $71 billion comprising a mix of stock and cash. However, Comcast decided earlier this month to no longer pursue Fox’s assets.
DIS in upward trend: 10-day moving average broke above 50-day moving average on September 20, 2024
The 10-day moving average for DIS crossed bullishly above the 50-day moving average on September 20, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
DIS moved above its 50-day moving average on September 16, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 276 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 162 cases where DIS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DIS moved out of overbought territory on October 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 54 cases where DIS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on October 07, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DIS as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DIS turned negative on October 07, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
DIS broke above its upper Bollinger Band on September 16, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 76%.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.213) is normal, around the industry mean (5.952). P/E Ratio (74.558) is within average values for comparable stocks, (90.982). Projected Growth (PEG Ratio) (0.871) is also within normal values, averaging (2.987). Dividend Yield (0.002) settles around the average of (0.039) among similar stocks. P/S Ratio (2.503) is also within normal values, averaging (30.667).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DIS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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General Information
an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment