Since mid-March 2020, DIS stock soared from a low of $79.07 to $119.
However, the recovery may have only just begun for DIS, especially with a good deal of fear priced into the stock. Not only will the company just reopen Shanghai Disneyland, it set a July 11 date to start reopening Disney World, as well.
Jim McPhee, senior vice president of operations for Walt Disney World, said the company plans a phased reopening of the park, with the Magic Kingdom and Animal Kingdom opening July 11, as reported by USA Today. Epcot and Disney’s Hollywood Studios are set to reopen July 15.
If business can get back to normal, shares of DIS potentially revisit a prior high of $140.
In addition, in its most recent quarter, Disney posted EPS of 60 cents and sales of $18.01 billion. Analysts were looking for 89 cents on sales of $17.8 billion. Unfortunately, says CNBC, “it’s difficult to compare reported earnings to analyst estimates for Disney’s second quarter, as the pandemic continues to hit global economies and makes earnings impact difficult to assess.”
American Airlines (AAL)
American Airlines (AAL) is taking off again. Over the last few days, the stock recovered from a low of $8.25 to $11.22. All on hopes the global economy can successfully reopen, and the world can get back to business as usual. It’s also pushing higher as Transportation Security Administration (TSA) data shows that travel demand is only rising. In fact, for the week ended May 30, the number of travelers returned to 293,144 – the highest number since May 15.
“We expect trends to continue to improve as states ease stay at home restrictions and leisure activities resume,” wrote Cowen analyst Helane Becker in a note to clients. “Airlines with whom we’ve spoken have seen modest green shoots with improvement coming in beach and mountain destinations.”
Cruise stocks, like Carnival have their head back above water. Over the last few weeks, CCL has soared from a low of $7.80 to $16.90. All on hopes business can get back to normal, especially with potential new vaccines nearing. In recent weeks, CEO Arnold Donald noted, “It’s been devastating temporarily. Travel is going to return, travel and leisure, and when it does, we’ll return with it. Social gathering at some point will return, and when it does, people will want to cruise,” he said. “We’ve had substantial bookings. Bookings for 2021 are strong.”
Boeing Co. (BA)
After a devastating fall from $360 to less than $90 a share, BA has slowly recovered to $153.31, and could see higher highs, as the global economy reopens, and as customers begin to show faith in its grounded 737 MAX.
Ian Cooper’s Personal Position in DIS, AAL, CCL, and BA: None
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