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Disney Shares Are On Track To Become The Largest Dow 30 Laggard

Walt Disney Company The NYSE:DIS - Disney Shares Are On Track To Become The Largest Dow 30 Laggard

Shares of Walt Disney Co DIS 1.6% have lost more than 11 percent since the start of 2016, and it is the worst performing stock among all 30 Dow components.

According to a CNBC report, should this still hold true at the end of the year, Disney will be the biggest laggard within the index for the first time since introduction to the index in 1991.

FBR Capital Markets' analyst Barton Crockett told CNBC that while Disney is a "great company," now is certainly "not the best time" to be a Disney shareholder. The analyst added that he is expecting the company to grow its earnings by only 2 to 3 percent in 2016.

Disney's woes aren't necessarily new to investors. The largest concern by far is its ESPN segment that collects high fees from millions of cable subscribers. However, the growing trend of cord-cutting is a major vulnerability for the company.

Oppenheimer's head of technical analysis, Ari Wald, also shared a similar sentiment with CNBC. He cited the stock's declining price, which is near a support level of $90 and is primed to be break below it.

Specifically, the technical analyst pointed out the "descending triangle pattern" on the stock's chart dating back to 2014, which "obviously carries bearish implications."

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