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Is Disney A 'Buy' After Reporting Earnings?

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Disney (DIS - Free Report) resumed its downtrend this week as the media conglomerate widely missed on its fiscal Q2 earnings and revenue expectations. DIS, currently a Zacks Rank #3 (Hold), has now fallen short on two of its last three earnings reports.

Shares of the entertainment giant hit a new low for the year following the earnings release. Disney posted quarterly earnings of $1.08 per share, missing the Zacks Consensus Estimate by -10%. Revenues of $19.25 billion also missed estimates by -4.96%.

Disney+ faces intense competition from Netflix and Amazon Prime. The streaming company maintains a leveraged balance sheet with substantial debt. Despite the recent downtrend, the stock is still relatively overvalued compared to its industry group.

Investors may want to look elsewhere for more profitable opportunities until the company shows signs of a turnaround.

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