Why a Big Rally Could Be Coming for Disney Stock
Disney (NYSE: DIS) has been under a lot of pressure over the past few years. It took a big hit from the pandemic and has had to invest heavily to get ahead in the streaming wars. These factors have weighed on its profits and its share price.
However, the company unveiled actions to turn things around earlier this year, including slashing $5.5 billion out of its cost structure to boost profits. The earnings improvement could fuel a big rally in Disney stock, given the historical correlation between the company's net income and share price. Because of that, now could be a great time to buy shares before they rally.
Disney's net income had steadily grown prior to the pandemic:
Source Fool.com
