Carter Worth On Whether Disney Can Get Its Magic Back

On CNBC's "Options Action," Carter Worth said Walt Disney Co (NYSE: DIS) does “really need to get its magic back.”

The company’s shares have lagged the S&P 500 as well as any travel, cruise or resort related stocks, he said.

Worth gave examples of the year-to-date performance of some stocks. For instance, Expedia Group Inc (NASDAQ: EXPE) is up 37%, Hilton Hotels Corporation (NYSE: HLT) has gained 35%, American Airlines Group Inc (NASDAQ: AAL) is up 36%, Royal Caribbean Cruises Ltd (NYSE: RCL) has risen 28%, Marriott International Inc (NASDAQ: MAR) has gained 26%, Hyatt Hotels Corp (NYSE: H) has risen 23%, and Booking Holdings (NASDAQ: BKNG) is up 17%. Disney is down 3% in the same period.

Disney has underperformed hospitality, hotel, and cruise as a sector for around 10 months, Worth said. “The thinking is that we’re going to get a bounce,” he commented. The stock could go to $185 on an earnings beat, he added.