Walt Disney Co (NYSE:DIS) has been on a rough ride the past year and has left investors with returns of just 4% in the past 12 months. However, the stock has been on the rise lately and it might be a great time to buy.
The stock’s 50-day moving average (MA) has been under its 200-day MA since August, but that has changed in the past few days. The share price’s 50-day MA is back on top, and the crossover is a bullish signal for investors that pay close attention to technical indicators.
When the 50-day MA dipped below the 200-day, the share price was around $103 and would go on to decline to a low of just $96. However, in the past three months the share price has risen 15%, and more gains could be on the way.
It was back in August, investors will recall, that Disney announced that it would be pulling its content from Netflix, Inc. (NASDAQ:NFLX) and would start its own streaming service as early as 2019. It was a bold strategy that didn’t resonate with investors at first.
However, the news would be overshadowed when in December Disney announced its intent to acquire Twenty-First Century Fox Inc (NASDAQ:FOX). Although investors have not been impressed with the deal, as Disney’s stock is up just 1% in the past month, we could see a lot of opportunities to create synergy and that could mean stronger margins for shareholders.
There are a lot of reasons why Disney’s stock could produce great returns for investors in 2018.
