Dow Extremes: The Walt Disney Company and Wal-Mart Stores, Inc.

Walt Disney Co (NYSE:DIS) and Wal-Mart Stores, Inc. (NYSE:WMT) have had decidedly different years

by Josh Selway

Published on Jun 18, 2015 at 2:24 PM
Updated on Jun 18, 2015 at 2:46 PM

It's been an up-and-down year for the Dow Jones Industrial Average (DJIA). As it stands now, the index is holding on to a 1.8% year-to-date lead. Below, we'll look at two of the Dow's 30 components, Walt Disney Co (NYSE:DIS) and Wal-Mart Stores, Inc. (NYSE:WMT), which have been its best- and worst-performing stocks in 2015, respectively. 

With its 1.4% gain today to trade at $113.10, DIS boasts a 20.1% year-to-date lead. This narrowly beats out UnitedHealth Group Inc. (NYSE:UNH), the second-best performing Dow component. Moreover, the shares touched an all-time high of $113.55 earlier.

Similar to fellow blue chips Goldman Sachs Group Inc (NYSE:GS) and Visa Inc (NYSE:V), put buying has picked up recently at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Walt Disney Co's 10-day put/call volume ratio across these exchanges comes in at 0.81, which is higher than 83% of readings taken in the past year.

What's more, the stock remains heavily shorted, as the over 41 million DIS shares controlled by bears represent nearly nine sessions' worth of trading, at its average daily volumes. Even with its already impressive 2015 gains, DIS could go even higher, if some of the weaker bearish hands hit the exits. 

On the opposite end of the spectrum is WMT. Coming into today, the stock was off 15% in 2015, but it was last seen 0.5% higher at $73.07. The shares have been on a steady trek lower since their all-time high of $90.97 on Jan. 13, pressured by their descending 20- and 32-day moving averages.

Perhaps this is why 82% of analysts say Wal-Mart Stores, Inc. is a "hold" or worse. On the other hand, option traders have been betting on a breakout. The security's 10-day call/put volume ratio at the ISE, CBOE, and PHLX comes in at 5.73 -- higher than 93% of similar readings from the past 12 months.

These bulls may be in luck, too. WMT's 14-day Relative Strength Index (RSI) comes in at 35, closing in on oversold territory. Like Walt Disney Co (NYSE:DIS), Wal-Mart Stores, Inc. (NYSE:WMT) could be in store for short-term gains.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
Apparel Name Boosted By Earnings Beat
Three analysts have moved their price targets down to $60
Black & Decker Withdraws 2020 Guidance, Cuts Non-Essential Staff
Black & Decker said it would reduce any non-essential staff and decided to withdraw its 2020 forecast
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.