Dow Extremes: The Walt Disney Company and Walmart Stores

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

Jun 18, 2015 at 2:24 PM
facebook X logo linkedin


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.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI