Burbank, California-based The Walt Disney Company (DIS) is one of the world’s largest entertainment companies. It produces and distributes films, television, video streaming content, and more. With a market cap of $200.5 billion, Walt Disney operates through the Entertainment, Sports, and Experiences segments.

Companies worth $200 billion or more are generally described as "mega-cap stocks." Disney fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the entertainment industry. The company’s content is loved by people of all ages across the globe.

Disney touched its 52-week high of $118.63 on Dec. 2 last year and currently trades 5.6% below that peak. DIS stock has dipped 1.6% over the past three months, notably outperforming the Dow Jones Industrial Average’s ($DOWI) 3.7% decline during the same time frame.

Disney has outpaced the Dow over the longer term as well. DIS stock has gained 9.4% over the past 52 weeks and 60 bps on a YTD basis, compared to Dow’s 8.7% gains over the past year and a marginal 77 bps dip in 2025.

To confirm the recent surge in stock prices, Disney has traded significantly above its 50-day and 200-day moving averages since early May.

Walt Disney’s stock prices soared 10.8% after the release of its impressive Q2 results on May 7 and maintained a positive trajectory for the next five trading sessions. The company experienced a notable growth in OTT subscriptions and revenue contributions from all three segments. This resulted in a 7% year-over-year growth in overall revenues to $23.6 billion, beating the Street’s expectations by 2.1%. Meanwhile, its adjusted EPS surged 19.8% year-over-year to $1.45, surpassing the consensus estimates by 22.9%. Moreover, its free cash flows increased 103.2% compared to the year-ago quarter to $4.9 billion, boosting investor confidence.

While Disney has lagged behind its peer Warner Bros. Discovery, Inc.’s (WBD) 27.6% surge over the past year, it has outpaced Warner’s 5% decline on a YTD basis.

Among the 29 analysts covering the Disney stock, the consensus rating is a “Strong Buy.” As of writing, Disney’s mean price target of $125.73 suggests a 12.2% upside potential from current price levels.