The Walt Disney Company (DIS) is set to announce third-quarter fiscal 2025 results on Aug. 6. Revenue estimate is $23.67 billion, up 2.23% YoY. Earnings estimate is $1.47 per share, showing 5.76% growth YoY. Disney has beaten earnings estimates in the last four quarters, with an average surprise of 16.38%.

Disney’s upcoming results are anticipated to build on previous momentum. The company’s Entertainment segment saw a 61% increase in operating income in Q2. Direct-to-consumer segment’s operating income jumped from $47 million to $336 million YoY. Streaming subscriber growth and improved monetization strategies are expected to drive revenue growth.

Disney’s Sports segment saw a 29% increase in domestic advertising revenues in Q2. ESPN’s SportsCenter initiative drove viewership and advertiser engagement. The Experiences segment announced a new theme park in Abu Dhabi, contributing to the company’s economic impact. Second-quarter results showed 20% growth in adjusted EPS and 7% growth in revenues to $23.6 billion.

Disney stock has returned 4.7% YTD compared to 6.3% growth in the Consumer Discretionary sector. The company operates in a competitive streaming market. Despite achieving streaming profitability, Disney trades at a forward P/E of 18.61x, below the industry average of 20.25x. Disney’s discounted valuation and strong fundamentals present a compelling investment opportunity.

Zacks Investment Research highlights a semiconductor stock with significant growth potential. The company specializes in products for AI, Machine Learning, and IoT, with global semiconductor manufacturing projected to grow to $971 billion by 2028. This under-the-radar stock is positioned for growth and offers an opportunity for investors to capitalize on the expanding semiconductor market.

Disney’s transformative business fundamentals, including streaming profitability and international expansion, create an attractive investment opportunity. With multiple growth catalysts and strong operational momentum, Disney is poised for significant upside potential. Investors should consider capitalizing on the current discounted entry point before the market fully recognizes Disney’s earnings potential.

Read more at Nasdaq: Disney Stock Before Q3 Earnings: Buy Now or Wait for Results?