by Raghu Gullapalli – SmartStops.net contributor
Disney (DIS) comes out with earnings after the close today and many wonder if the much-ballyhooed takeover of comic book shop Marvel is about to start paying for itself. The movie, Thor, had a strong weekend debut. It claimed the top spot at the box office, raking in $66 million. Through the summer many of the company’s blockbuster franchises will have new releases; Pirates of the Caribbean & Captain America.
The continued weakness in the dollar should make Disney theme parks and resorts attractive destinations for tourists as well.
From a technical perspective, Disney (DIS) has been consolidating at the highs for a couple months now. No doubt many investors would like to see a strong catalyst to trigger their interest if the stocks breaks out and makes new highs. And while Disney (DIS) has rarely been a good candidate for a momentum trade, the few times have been in the days following earnings.
As a member of the Dow 30, the stock has benefited from the overall strength of the market and that with the addition of solid earnings may be enough to push it higher.
SmartStops.net considers Disney a low risk investment at this time with short-term stops at $41.63 and long-term stops at $40.62. If you have an investment, be sure to keep your profits protected. If you are just making an investment, you can use SmartStops free position sizing calculator to properly manage risk.
Disclosure: Author has no positions in the mentioned symbols.