Disney (DIS) is currently trading at a discounted valuation with a P/E ratio of 18.41x, below historical averages. Fiscal Q3 2025 results show 8% segment income growth and 16% EPS rise. Streaming and theme park performance fuel improved guidance for 2025, but strategic considerations suggest holding for clearer catalysts.

Disney projects $5.85 EPS for fiscal 2025, 3.88% revenue growth, and 17.91% earnings increase. Direct-to-consumer segment’s $346 million operating income in Q3 2025 signals a turnaround, with Disney+ reaching 128 million subscribers. ESPN’s new streaming service and strategic content deals enhance growth prospects.

Disney’s theme park segment reports 8% revenue growth, with major expansions planned globally. Despite a 6.7% YTD stock gain in 2025, Disney lags behind competitors like Netflix and Amazon. Disney offers diversification advantages over Netflix but faces near-term margin pressures from expansion investments.

Investors should hold Disney stock due to macroeconomic uncertainties and ongoing theme park disruptions. Despite operational improvements, entry points need monitoring, with limited near-term catalysts. Disney’s strong fundamentals support appreciation potential, but caution is advised. Zacks Rank #3 (Hold) for Disney.

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Read more at Nasdaq: Disney Trades at 18.41x Discounted P/E: Buy, Sell or Hold the Stock?