Skip to main content

NEW YORK (TheStreet) -- The Walt Disney Co. (DIS) - Get Walt Disney Company Report stock closed higher by 0.61% to $118.67 on Wednesday after projections showed the company's latest Pixar movie, "The Good Dinosaur," leading the box office this weekend, MarketWatch reports.

"The Good Dinosaur," which is out today, is expected to make $54 million on its opening weekend and $74 million including the Thanksgiving holiday, according to analysts.

The movie is Pixar's second this year following "Inside Out," which made $90 million in its summer opening weekend, MarketWatch added.

Lions Gate Entertainment Corp. (LGF) is also expected to see a boost this weekend, with "The Hunger Games: Mockingjay - Part 2" expected to generate $197 million for the holiday and the weekend.

The movie's projections make it the top earner for the next five days.

TheStreet Recommends

The last film in the series generated lower than expected sales on its opening weekend, with sales of $101 million. Analysts had estimated sales of $120 million. 

Separately, TheStreet Ratings team rates DISNEY (WALT) CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DIS's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.16% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DIS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • DISNEY (WALT) CO has improved earnings per share by 10.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $4.90 versus $4.25 in the prior year. This year, the market expects an improvement in earnings ($5.66 versus $4.90).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 7.3% when compared to the same quarter one year prior, going from $1,499.00 million to $1,609.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • You can view the full analysis from the report here: DIS

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.