Shares of Walt Disney (NYSE: DIS) have fallen more than 10% over the last month. But investors should think twice before they "buy the dip." Recent results simply aren't encouraging enough to justify the stock's current valuation. Furthermore, the company's streaming transformation in its content business has yet to prove itself.

Sure, management recently reinitiated a dividend, reflecting its confidence in a strategic restructuring and a reinvigorated focus on growth. But investors shouldn't automatically assume that management's confidence is a buy signal. Buying the entertainment stock at its current valuation may simply require too much speculation.

The first major problem at Disney is its anemic top-line growth. Total revenue in its most recent quarter (fiscal Q2) rose just 1% year over year.

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Source Fool.com