Why We're Bullish on the Disney Stock Price in 2016

Disney's new Star Wars installment, "The Force Awakens," has already broken pre-sales records in the United States, and it will be a major catalyst for the Disney stock price (NYSE: DIS) in 2016.

"The Force Awakens" sold a whopping $100 million worth of pre-sales tickets before its Dec. 18 debut, according to Variety.

To put that in perspective, that's 20% more than "Jurassic World's" pre-sales, which currently holds the record for the third highest-grossing film in history, behind "Titanic," according to Variety.

Disney Stock Price"Disney has so many good things going on with Star Wars," Money Morning Technical Trading Specialist D.R. Barton told CNBC on Dec. 14.

While Disney stock is receiving a lot of hype now, the excitement is justified. Disney is monetizing the Star Wars franchise in every way possible. And much of the hype will translate into outstanding box-office sales for Disney.

Morgan Stanley estimates "The Force Awakens" will generate $2 billion in ticket revenue. Rotten Tomatoes, a movie critic website notorious for tough reviews, gave the movie a 94% rating. With two more Star Wars movie installments on the way, Disney has the potential to build the Star Wars brand into something bigger than ever before.

But ticket sales are just one of the huge profit drivers that will boost the Disney stock price heading into 2016...

Disney Stock Price Drivers in 2016

The real profit multiplier for Disney will be Star Wars merchandise sales and its new Star Wars theme parks.

Disney projects Star Wars merchandise sales will hit $5 billion by 2016. This would easily beat Disney's other box-office hit and current record-holder "Frozen," which sold an estimated $1 billion in licensed merchandise after its first year in 2014, according to Fortune.

Disney is using every industry it can to promote the Star Wars franchise. Some of its most successful sales have come from games and licensed products. Electronic Arts Inc. (Nasdaq: EA) estimates it will sell 16 million units of its Star Wars "Battlefront" game by March, according to Barton.

"Disney is being brilliant in the way they've gotten so many touches," Barton said on CNBC, "from makeup to toys to even fast food restaurants."

Disney is also building two new Star Wars theme-park expansions in Orlando, Florida, and Anaheim, California. The 14-acre land expansions will be a hot spot to buy Star Wars merchandise. The expansions will also give Disney a huge ticket sale boost for its theme parks.

Watch "The Force Awakens'" box-office performance closely. If ticket sales miss expectations and the Disney stock price dips, that's a great entry point. If ticket sales beat expectations, Disney is still a great long-term stock to catch on the rise and hold until the first half of 2016.

At $112 as of Dec. 17, the Disney stock price is up nearly 19% year to date.

"I've got a $175 price tag on them [Disney] at 28 to 30 months," Money Morning Defense & Tech Specialist Michael A. Robinson said in an Aug. 6 interview with CNBC. "There's a lot of momentum here, and I think there's a lot of value ahead for Disney."

Besides the new Star Wars movie, Disney plans to release in 2016 a new "Jungle Book" movie, a sequel to "Alice in Wonderland," a "Finding Nemo" spin-off called "Finding Dory," and many more promising titles. It's also opening up a theme park in Shanghai.

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