Attention Disney Investors: Don't Forget About Earnings

Walt Disney Co DIS has reportedly been in talks to buy most of Twenty-First Century Fox Inc FOXA's business. For the time being, the on-again, off-again talks appear to have stalled with no agreement.

The Expert

AdvisorShares portfolio manager's Eddy Elfenbein.

The Strategy

Investors who aren't already a shareholder shouldn't be buying Disney's stock now and existing shareholders should be holding the stock for the long-term.

The Thesis

Recent chatter involving Disney buying nearly all of Twenty-First Century's media assets may be distracting investors from what's going on inside Disney's own empire, Elfenbein said during a recent CNBC "Trading Nation" segment. Specifically, one of Disney's most notable media assets, ESPN, hasn't been performing well over the past few years and another lackluster performance could drag down the company's earnings once again.

ESPN's ongoing woes is playing a part in keeping Disney's stock from performing well, he also said. In fact, patient investors looking to buy a position for the longer-term are encouraged to sit on the sidelines for a better entry point over the next six to 18 months.

Disney is expected to report earnings after Thursday's close.

Price Action

Shares of Disney are lower by 1.5 percent since the start of 2017 and lower by 8 percent over the past six months.

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