Burbank, California-based The Walt Disney Company (DIS) operates as an entertainment company worldwide. Valued at $190.5 billion by market cap, the company's businesses include, media networks, parks and resorts, studio entertainment, consumer products, and interactive media.

Shares of this entertainment giant have underperformed the broader market considerably over the past year. DIS has gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 8.6%. In 2025, DIS stock is down 4.9%, compared to the SPX’s 3.8% decline on a YTD basis. 

Narrowing the focus, DIS’ underperformance looks more pronounced compared to the Communication Services Select Sector SPDR ETF (XLC). The exchange-traded fund has gained about 19% over the past year. Moreover, the ETF’s marginal gains on a YTD basis outshine the stock’s single-digit losses over the same time frame.

On May 7, DIS shares closed up by 10.8% after reporting its Q2 results. Its adjusted EPS of $1.45 exceeded Wall Street expectations of $1.18. The company’s revenue was $23.6 billion, beating Wall Street forecasts of $23.1 billion. DIS expects full-year adjusted EPS to be $5.75.

For the current fiscal year, ending in September, analysts expect DIS’ EPS to grow 15.9% to $5.76 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 29 analysts covering DIS stock, the consensus is a “Strong Buy.” That’s based on 21 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”

This configuration is slightly more bullish than a month ago, with 20 analysts suggesting a “Strong Buy.” 

On May 8, Needham analyst Laura Martin maintained a “Buy” rating on DIS and set a price target of $125, implying a potential upside of 18% from current levels.

The mean price target of $126.19 represents a 19.1% premium to DIS’ current price levels. The Street-high price target of $147 suggests a notable upside potential of 38.8%.