Walt Disney (DIS) shares are once again trailing the broader market this year, marking the fourth time in the last five years the stock has underperformed. Weighed down by fierce streaming competition, cautious consumers, and persistent challenges in its film business, the House of Mouse has struggled to reignite investor enthusiasm. But all eyes may soon shift to Central Florida later this month, where a pivotal moment for the theme park industry is fast approaching. 

On May 22, Universal parent Comcast (CMCSA) is set to open Epic Universe in Orlando, the first major theme park to debut in the U.S. in over two decades, since Disney’s own California Adventure launched in 2001. While Epic Universe has faced early hiccups during its paid previews, its grand opening later this month is expected to draw massive crowds, potentially lifting overall tourism in the region. For Disney World, this could be a double-edged sword. 

On one hand, Epic Universe might steal some of the spotlight and draw visitors away. But on the other hand, the surge in tourism to Central Florida could lead to more guests and more dollars flowing into Disney’s parks. If that boost in traffic plays out, it could bring fresh momentum to Disney’s Experience segment. Thus, with May 22 fast approaching, here’s a closer look at DIS stock. 

About Walt Disney Stock

Founded in 1923, California-based Disney (DIS) is a global entertainment powerhouse operating across Entertainment, Sports, and Experiences. From hit content under brands like Disney, ABC, Pixar, and National Geographic to streaming platforms like Disney+, Hulu, and ESPN+, Disney dominates screens worldwide. Beyond media, its iconic theme parks, cruises, and merchandise turn beloved stories into immersive global experiences.

With a market cap of around $184.6 billion, DIS stock has gained just slightly over the past year, significantly trailing behind the broader S&P 500 Index ($SPX), which gained 9.8% during the same stretch. On a YTD basis, the stock is down roughly 5.2%, while the broader market has dipped only 3% so far in 2025. 

Given its recent headwinds, Disney’s valuation paints a compelling picture for bargain hunters. The stock trades at just 16.9 times forward earnings, a steep discount to its own five-year average of 41.57x. This underlines how far sentiment has fallen, especially when compared to industry rival Netflix (NFLX), which boasts a much richer valuation at 44.78x forward earnings.

Digging Into Disney’s Q2 Performance

Disney shares surged more than 10% on May 7 after the entertainment giant delivered a blowout fiscal 2025 second-quarter earnings report, crushing Wall Street’s expectations on both the top and bottom lines. Total revenue climbed 7% year-over-year to $23.6 billion, edging past estimates by 2.1%. Meanwhile, adjusted earnings per share soared 20% annually to $1.45, beating consensus by a robust 19.8%.

The Entertainment segment, which houses Disney’s TV networks, streaming platforms, and film studios, posted a 9% year-over-year revenue jump to $10.7 billion, powered by a strong tailwind from winter box office hits. The Sports division, anchored by ESPN, delivered a 5% gain to $4.5 billion, lifted by solid growth in advertising revenue.

Disney’s Experiences business, encompassing theme parks, cruises, resorts, and consumer products, also impressed with a 6% revenue increase to $8.9 billion. Looking ahead, the company is forecasting adjusted EPS of $5.75 for fiscal 2025, marking a 16% rise over the prior year. As for the third quarter, Disney expects a modest uptick in Disney+ subscribers within its Direct-to-Consumer Entertainment segment, continuing its steady momentum.

What Do Analysts Expect for Walt Disney Stock?

Wall Street appears to have strong faith in DIS stock, maintaining a consensus rating of “Strong Buy” overall. Of the 29 analysts offering recommendations, 21 advise a “Strong Buy,” two suggest a “Moderate Buy,” and the remaining six give a “Hold.” The average analyst price target of 124.42 indicates potential upside of 19%, while the street-high price target of $147 suggests that DIS could rally as much as 40%  from here.