Walt Disney Co (NYSE:DIS) faces a crucial test when the company reports earnings on Nov. 9. DIS stock price remains about 15% below its 52-week high. It has shown little movement despite the positive news. Reports of strong pre-sales for the upcoming release of “Star Wars: The Last Jedi” have failed to stir interest in the stock.

Even though the company has many valuable media and theme park-related assets, the changes in the media landscape have posed challenges. Given the mixed picture on DIS stock, it’s conceivable the stock could become a buy regardless of the market’s reaction to its next earnings report.

Investors should note that the stock fell after the last two earnings announcements. The reaction to the November earnings announcement is not yet known. However, either reaction could potentially be a buy signal. A higher price would indicate that the decline in the price of DIS stock has likely ended. Another large fall in the stock price would indicate the stock is becoming a bargain.

Enduring Content Drives DIS Stock value

Many of the company’s challenges persist. The recently announced Star Wars IX production delays that alarmed investors still linger. Also, questions remain on the success of ESPN’s upcoming streaming service. Since the company announced that it will exclude live NFL and NBA programming from the platform, questions remain as to how valuable the service will be.

Still, other parts of Disney look more promising. As my colleague Luke Lango points out, Disney has the best movie and television content. The success of Netflix, Inc. (NASDAQ:NFLX) proved that a streaming service could be a viable business model, and Disney now wants to have the best streaming service. This strategic change allows Disney to profit from rather than be left behind by streaming.

Netflix is aggressively creating original content to remain competitive, as it will be behind Disney in this area. Disney owns its classic animated films, as well as Lucasfilm, Marvel and Pixar. Also, the top three movies of 2016 are products of the Disney media empire. Hence, a Disney streaming service poses a strong threat to Netflix.

It should also be noted that the enduring value of this content that led Warren Buffett and Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B) to first purchase in 1966. He sold the stake one year later in 1967. Unfortunately for him, his initial $4 million stake in Disney stock would be worth about $12 billion if he still owned it today.

Movies and Parks Are Disney’s Revenue Drivers

It’s the Lucasfilm content that’s currently boosting optimism with Disney stock. Pre-sales on tickets for “The Last Jedi” have been strong and point to the enduring popularity of the Star Wars franchise. Delays with the next Star Wars movie caused concern with investors. However, with the popularity of Star Wars movies, production issues will delay rather than deny profits to Disney investors.

Also, Disney’s theme parks have performed well, even as other divisions of the company experienced challenges. The current price to earnings (PE) ratio for DIS stocks stands at about 17. This figure is close to averages for the S&P 500 but well below the entertainment industry average of 31. It’s likely the theme parks that have prevented Disney stock’s PE ratio from falling into or near the single digits.

Start Buying DIS Stock Now

Due to slowly improving fortunes, the downtrend in Disney stock is likely nearing an endpoint. Ticket sales confirm the staying power of the Star Wars franchise endures. Investors also appear more confident the company has an answer to falling cable subs with their upcoming Disney streaming service. With most of its challenges addressed, now is the time to open a small position in DIS stock. Buyers should then wait until the earnings report to double or triple up.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks.