3 Reasons to Buy Disney Stock in the Fall

Autumn is here, and traditionally, this is a quiet time for Walt Disney (NYSE: DIS). Its slate of summer theatrical releases with blockbuster potential slows to a trickle. Families return to school, and with that comes a slowdown in turnstile clicks at Disney World and Disneyland.

Even the broadcasting business, which typically picks up the pace this time of year, hits different. The start of ABC's new fall programming season has been overshadowed by the year-round cadence of fresh offerings on streaming services. Fresh NFL and NBA seasons kick off and tip off on ESPN -- and college ball on the ACC Network -- but now a slew of digital platforms have carved out pro sports content.

It doesn't mean that the House of Mouse is a house of cards. There are a few good reasons to warm up to the Mickey Mouse company right now. Let's take a look at three things that will happen over the next three months to make Disney worth owning.

Image source: Disney.

1. The stock is cheaper than it's been in a long time

There's no point in burying the lede. In a rising market, Disney shares have declined 8% over the past year. The business keeps growing. The positive catalysts are still percolating. Investors can just get in at a more attractive price point right now.

When Disney reports its fiscal fourth-quarter results in early November, it should mark a round milestone. Disney's trailing revenue will top $100 billion for the first time. Analysts see revenue rising 12% for the quarter itself -- its first double-digit increase in more than three years -- but there are some asterisks there. An additional week in fiscal 2026 will account for more than half of that growth in the fiscal fourth quarter. There is also the consolidation of FuboTV results, which began in October of last year, after Disney combined its Hulu + Live TV business with the smaller Fubo to gain a controlling stake in the live-television streaming platform.

There will still be organic growth to be had for Disney's streaming and theme parks business. For the full fiscal year ending next week, analysts see revenue rising almost 8% and earnings per share up 17%. With Disney stock trading lower over the past year, the media, sports, and experiences giant is priced at just 15 times adjusted earnings. The multiple drops to less than 14 if we go out to the new fiscal year that starts in October.

2. Avengers assemble

After back-to-back years of dominating the box office -- putting out six of the seven movies that topped $1 billion in worldwide ticket sales through 2024 and 2025 -- Disney has been lost in the crowd this year. Pixar's Toy Story 5 is its lone entry in the billion-dollar club, joining four other non-Disney releases. It won't be alone for long.

Avengers: Doomsday will hit your corner multiplex with the force of Thor's hammer on Dec. 18, just a couple of days before the fall season ends. It's going to be a pretty big deal. Movie theaters are busy again. There will be more movies generating at least $1 billion in global ticket sales than in just one other year in multiplex history. Disney's latest installment from the iconic Marvel franchise should top them all. The last Avengers movie rang up $2.8 billion in ticket sales, the second-highest-grossing movie of all time.

3. The beats should keep coming

With new CEO Josh D'Amaro just a couple of quarters into his tenure at the helm, investors are still waiting for the change at the top to pay off on the stock chart. He already delivered blowout results in the fiscal third quarter, his first full quarter as CEO.

Disney already has more than a year of consistent earnings beats. It should be more of the same. Despite some companies -- including rival theme park and cruise line operators -- warning of a slowdown over the summer -- Disney's experiences segment continues to deliver. All of the ingredients are in place for Disney to shine in the new season. Getting the stock to start moving in the right direction during the new fiscal year, which starts next week, would be a great way to make a statement.

Rick Munarriz has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.