Disney stock is a good pick for a ‘mild recession’: Gina Sanchez
- Chantico Global CEO Gina Sanchez makes a bull case for the Disney stock.
- The entertainment conglomerate will be reporting its Q3 results next month.
- Shares of Walt Disney Co are down about 35% versus the start of the year.
Walt Disney Co (NYSE: DIS) is a fantastic stock pick if you see only a “mild” recession ahead, says Gina Sanchez. She’s the CEO of Chantico Global.
The bull case for Disney stock
Signs of “peak inflation” have started to pop up in several parts of the economy. Many, therefore, expect the Fed to turn less hawkish towards the end of 2022. If true, a mild recession at best does indeed sound like a plausible thesis.
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Now, Disney has had its fair share of struggle amidst the COVID pandemic. But moving forward, Gin Sanchez said on CNBC’s “The Exchange”, its well-positioned even for a mild recession.
Parks are already starting to normalise in terms of numbers, they’re growing like gangbusters. They’ve upped their pricing with absolutely no response in demand, which is to say that Disney has incredible pricing power.
Disney stock is down about 35% year-to-date, so it’s attractive on valuation basis as well.
Sanchez is also bullish on Disney+
The mass media and entertainment conglomerate will be reporting its Q3 results next month. Sanchez is also bullish on its streaming service, Disney+ that goes head-on with Netflix Inc. She noted:
Disney Plus is still growing subscribers while Netflix is losing subscribers. And they also have the ESPN plus Hulu bundle, which right now, nobody has. That was sort of the cable story.
Launched in November 2019, Disney+ has already accumulated over 87 million worldwide subscribers. Sanchez’ constructive view is in line with Wall Street that also rates the stock at “overweight” and sees upside to $136 on average.
The Burbank-headquartered firm is expected to report 95 cents of per-share earnings this quarter.