Here's How to Trade Disappointing Disney

If Captain America's heroics can't save Walt Disney (DIS - Get Report) stock from falling, what can? Once again the House of Mouse disappointed with its earnings earlier this week, which pushed down the stock. Was were sellers too hasty?

Disney can be magical again, even with the continued struggles of ESPN whose subscriber losses have leveled off.

Fundamentally, these shares are cheap, trading at just 17 times forward estimates of $5.81, which is in line with the S&P 500 (SPX) index. From a technical perspective, DIS still looks attractive and poised to maintain its bullish trend line, delivering gains of 10% to 15%.

The stock closed Thursday at $101.71, down 0.57%. The shares are down almost 3.21% so far on the year, compared with a 1% rise in the S&P 500 index. Based...