{"id":1224430,"date":"2026-01-23T11:21:33","date_gmt":"2026-01-23T09:21:33","guid":{"rendered":"https:\/\/www.etoro.com\/?p=1224430"},"modified":"2026-03-20T19:25:47","modified_gmt":"2026-03-20T17:25:47","slug":"deep-dive-is-disney-a-worthy-turnaround-story","status":"publish","type":"post","link":"https:\/\/www.etoro.com\/en-us\/news-and-analysis\/market-insights\/deep-dives\/deep-dive-is-disney-a-worthy-turnaround-story\/","title":{"rendered":"Deep Dive: Is Disney a Worthy Turnaround Story?"},"content":{"rendered":"

Disney stock has gained in several years…technically speaking. However, it’s lagged the overall market. The Daily Breakdown dives into DIS.<\/p>\n

Before we dive in, let\u2019s make sure you\u2019re set to receive The Daily Breakdown each morning. <\/span><\/i>To keep getting our daily insights<\/i><\/b>, all you need to do is <\/span><\/i>log in<\/span><\/i><\/a> to your eToro account.<\/span><\/i><\/p>\n

Deep Dive<\/b><\/h2>\n

Disney<\/a> stock has now gained for three straight years, but over that span, it has climbed just 31%. While that may not seem too bad, it pales in comparison to the S&P 500\u2019s gain of 78.3% or the Nasdaq 100\u2019s rally of 130.8%.<\/span><\/p>\n

The company has evolved from a focus on movies and theme parks into a broad entertainment juggernaut. Its TV networks include ABC, ESPN, FX, Fox, and National Geographic, while its streaming platforms are led by Disney+ and Hulu. Its hospitality arm extends beyond theme parks to include cruise ships and resorts, and Disney also controls Pixar, Marvel, Lucasfilm, and Twentieth Century Studios.\u00a0<\/span><\/p>\n

Despite this expansion in assets, the stock has not reacted in kind.<\/span><\/p>\n

\"Disney's<\/p>\n

Looking at the business, profits took a major dip in 2020 even as revenue remained relatively resilient \u2014 a reality for an entertainment and hospitality company. However, while revenue has continued to grow, profits did not meaningfully recover until 2025, when net income jumped from nearly $5 billion to more than $12.4 billion. Operating margins are also trending higher.<\/span><\/p>\n

Future Growth Projections<\/b><\/h4>\n

Disney\u2019s fiscal year starts in October, so fiscal 2025 is already in the books. Despite revenue growth of just 3.4%, the company grew adjusted earnings by more than 19%. Looking ahead, earnings growth is expected to stabilize around 11% annually and continue to outpace revenue growth.<\/span><\/p>\n

According to Bloomberg, analysts project the following:<\/span><\/p>\n