Disney (DIS) Stock Climbs on 'Tomorrowland' Opening in Theaters Friday

NEW YORK (TheStreet) -- Shares of The Walt Disney Co. (DIS) closed up 0.17% to $110.39 as Disney's new adventure movie "Tomorrowland" opens in theaters tomorrow.

The new film stars actress Britt Robertson and actor George Clooney who embark on a mission to unlock the secrets of the dazzling, futuristic world of "Tomorrowland."

Based on its theme park, the film cost about $170 million to make, and it will likely appeal to family audiences looking for PG-rated counterprogramming, the Los Angeles Times reported.

Directed by Brad Bird, the sci-fi fantasy film is expected to top the Memorial Day Weekend at the box office.

In addition to the new movie, Disney opened its first store in China yesterday, calling its new Shanghai location the largest Disney Store in the worldShanghai's Disney theme park is expected to open in 2016. 

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, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. 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 4.2%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DISNEY (WALT) CO has improved earnings per share by 13.9% 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 $4.25 versus $3.38 in the prior year. This year, the market expects an improvement in earnings ($5.08 versus $4.25).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $1,917.00 million to $2,108.00 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.
  • Net operating cash flow has increased to $2,918.00 million or 15.47% when compared to the same quarter last year. In addition, DISNEY (WALT) CO has also modestly surpassed the industry average cash flow growth rate of 15.01%.
  • You can view the full analysis from the report here: DIS Ratings Report

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