Disney is set to report its Q4 results, with shares up only 3% in 2025 despite being close to a 52-week high. After aggressive cost-cutting, Disney now focuses on long-term growth. Q4 sales are projected to rise 1% to $22.88 billion, with EPS expected to dip 9% due to pressure on traditional TV and sports broadcasting.

Investors are anxious to see if Disney’s new growth strategy pays off. The company plans to spend $8 billion on capital expenditures this year, up from $5 billion in 2024. With the streaming segment becoming profitable, Wall Street awaits increased profitability. Disney is investing in streaming and theme parks while cutting costs in underperforming assets and corporate overhead.

Disney is expanding internationally, with plans to open a theme park resort in Abu Dhabi. The company is investing $6 billion in experiences, including theme parks and cruises. Disney’s streaming subscribers, including Disney+ and Hulu, are in close competition with Amazon Prime Video. Disney’s stock offers an attractive P/E valuation compared to its competitors.

Disney’s stock is trading at a reasonable 17X forward earnings multiple, offering potential long-term upside. With an Average Zacks Price Target of $135, there is a projected 20% upside from current levels. Disney’s Q4 results and guidance will be crucial in showing the success of its strategic expansion. The company is seen as a viable long-term investment.

Read more at Nasdaq: Does Disney Stock Have More Upside as Q4 Results Approach?