On which share price to bet on Wall Street?

Wall Street runs. A scenario that offers interesting insights both to understand what stock to bet on American markets at the moment, and to implement winning trading strategies. Earning on the stock market with rising markets is not easy, especially if we were to use the classic “buy low, sell high". With the important premise that trading is not easy and traders' mistakes are on the agenda, there are also other profitable investment methods.

Why do many lose on the stock market?

First of all it is good to keep in mind that every market has its opportunities. In general the American one offers many more options than others and it is for this reason that it represents the choice of many investors. But beyond this, investing in financial markets also means respecting the rules. And if it is true that there is an irrational component in the general performance of the stock exchanges, it is equally true that rigor is absolutely mandatory in the implementation of strategies.

Profitable trading strategies

The rigor of which we have spoken also presupposes the knowledge of some bases of which it is not possible to do without. For example the valuation criteria of a stock certificate. There are normally three essential characteristics to consider. First and foremost the strength and economic solidity of a company given by its fundamentals. Then the history and the corporate background, which give the title a good reputation from a media point of view, should also be kept an eye on. Finally, but not in order of importance, its being profitable over the long haul.

On which share price to bet on Wall Street?

A company that could be worth watching for at the moment is Walt Disney Company (DIS), of which we have already analyzed some aspects in previous contributions. The company, which is now almost 100 years old, has implemented important acquisition strategies and has kept pace with the times. Miramax, Touchstone, Hollywood, Pixar, Marvel, Lucasfilm is 21st Century Fox they are all trademarks Disney.

The challenge to the streaming giants

After the acquisition of Hulu for 30 billion it was clear to everyone that Disney wanted to enter the entertainment streaming sector, competing with Netflix is Amazon Prime Video. Its new creature just in November should be operating in the United States, with the name of Disney + .

Scenario analysis and economic prospects of the company

From a fundamental point of view, Walt Disney Company suffered a slight decline in the last period, which according to the same company was due to the acquisition of the 21st Century Fox.

But as can be seen in the last graph, the percentage increase over time is progressive and in 2019 we find a truly remarkable peak. This clearly suggests how solid the company actually is.

The analysis of the two graphs above shows the trend on Wall Street on a historical basis and on an annual time frame. On the latter we see a stationary title around the $ 130 area, which came from its all-time high of $ 146.

In conclusion, if we purely based ourselves on technical analysis, Walt Disney Company would take a little back seat. But the evaluation must necessarily be made taking into account the three factors we talked about at the beginning and which are in fact characteristics that belong to the Californian company.