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A combined Paramount and Warner Bros. studio will need to bolster its animation slate to compete at the box office.

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It does not seem like a new CEO has helped Disney (NYSE: DIS | DIS Price Prediction).

Walt Disney (NYSE:DIS | DIS Price Prediction) has had a rough stretch heading into spring.

Disney (DIS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

The Walt Disney Co. can offer compelling long-term value when purchased during oil price spikes and recession-driven selloffs. I am upgrading DIS to 'Buy' for the next 12 months, with 'Strong Buy' territory projected around $80 per share. Historical patterns show DIS outperforms after oil price peaks, as economic recovery takes hold for years, especially when the Disney/crude oil ratio falls below 0.5x.

DIS faces near-term margin headwinds from the higher theatrical/sports rights/pre-opening/pre-launch costs as observed in the softer FQ1 2026 results and the mixed FQ2 2026 guidance. Otherwise, the management already reiterates their FY2026/FY2027 double-digit EPS growth guidance, aided by the robust IP franchise monetization prospects across movie/streaming/theme park/cruise. The selloff has triggered DIS' discounted FWD P/E of 14.97x, below historical and peer averages, with it triggering the rich upside potential to my bull-case long-term price target of $171.70.