5 Reasons Disney Stock Can Double in 5 Years

It shouldn't be hard for a stock to double over five years. If a stock goes up 15% a year, it will get there. However, the market itself doesn't rise with that kind of consistency. If you're a longtime Walt Disney (NYSE: DIS) investor, you know that's a seemingly unreasonable aspiration.

A Disney investment has been a dud in recent years. The shares are down a modest 3% over the past year but are currently trading nearly 40% lower over the last five years. Arguing that the media giant's stock would just have to roughly double to reach its all-time highs in early 2021 -- when the shares briefly traded north of $200 -- is easier said than done.

Thankfully for Disney, there are some pretty good reasons why the next five years can be materially better than the last five. Let's look at some reasons Disney stock could double by 2031.

Image source: Disney.

1. Playing the margins

Disney's bottom line has improved dramatically over the past few years, even as the stock price has languished or gone the other way. Disney's streaming business, which was losing billions annually just three years ago, is now profitable.

The pandemic hit Disney's business particularly hard, even though the stock reached a new all-time high in March 2021, while Disneyland in California was still shuttered and its cruise line was still waiting to resume operations. The recovery has been potent.

Disney's adjusted net margin is accelerating sharply for the fifth consecutive year, more than quadrupling from 2% in fiscal 2021 to a trailing margin of 8.4% as we await Disney's fiscal 2026 report next month. The company is delivering on the bottom line.

2. Cheap is an understatement

The overall market is trading at lofty multiples these days. The same can't be said about Disney stock. You can buy a piece of the iconic entertainment powerhouse for just 14 times what analysts see it earning in the new fiscal year that started earlier this month.

Like a limbo stick, that multiple gets lower as the game plays on. Project out to what these same Wall Street pros are modeling, and Disney is trading for just 11 times fiscal 2031's earnings.

Naturally, Disney's trailing P/E ratio would be twice that much if it were to double from here, but this doesn't mean that Disney at $216 in five years means that it's trading for 22 times trailing earnings. Disney has routinely exceeded expectations, and analysts have been perpetually raising their targets. The company has landed 3% to 11% above the market's bottom-line expectations over the past year, even as the stock ticked lower.

3. Mickey Mouse makes monster movies

There were just three theatrical releases by U.S. studios that topped $1 billion in global ticket sales in 2024. Disney put out all three. The same thing happened last year.

It's been different in 2026. A lot of studios have been cranking out blockbusters, and Disney will have just two releases clear the $1 billion mark in box-office receipts.

That's not a bad thing. Folks are going out to the movies again. There will be at least six movies that exceed $1 billion in worldwide sales this year, something that has only happened once before.

With the return to pre-pandemic ticket sales and a now-profitable Disney streaming business, Disney has a one-two punch to cash in on every theatrical release. This is the first time this has been the case since the demise of the once-lucrative home video sales market.

4. Theme parks are generating record results

Experiences have been Disney's most potent business segment in recent years. Its theme parks and rapidly expanding cruise line are cashing in on consumers' craving for premium, family-friendly vacation environments.

The segment accounts for 39% of Disney's revenue through the first nine months of fiscal 2026 and a whopping 61% of the operating profit. Expansion is underway at Disney's gated attractions worldwide. Last week's reveal of the unique features of Disney Believe -- its latest cruise ship that will set sail next year -- gives it another way to cash in on the travel boom.

5. Folks aren't flinching at higher prices

The best thing about being a premium player with a killer brand in a thriving niche is that you have pricing elasticity. Disney raised theme park prices last week. Disney+ and Hulu monthly subscription rates went up last month.

You may have seen some online rumblings about the hikes, and there may be some degree of churn. The real takeaway here is that Disney has done this at its theme park resorts and premium streaming services practically every year. The businesses continue to grow because consumers see Disney investing in new park experiences and streaming content.

The only price at Disney that doesn't seem to be rising these days is its stock price. My prediction is that the upticks are coming next. I believe that Disney can double from here in the next five years.

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