Walt Disney Co (NYSE:DIS) recently reported second-quarter earnings numbers, and they were much better than expected. But Disney stock is trading down in response to the numbers.

A failure to rally on good news is rarely a positive sign for a stock. At this point, then, it is only natural to ask the obvious. Is Disney a good stock to buy?

For investors with low risk appetite that are positioned for long-term gains, I think the answer is yes. At current levels, all of the company’s persistent cord-cutting headwinds are fully priced in, but hardly any of the company’s forthcoming streaming tailwinds are priced in. That makes for a favorable set-up to own Disney stock long term.

Moreover, Disney’s recent earnings report showed some signs of hope that these streaming tailwinds could be quiet powerful.

All in all, I’m a buyer of Disney stock here and now.

Here’s a deeper look:

Disney Turned In A Really Good Quarter

Despite the negative stock price reaction — which is likely just the result of persistent fear related to cord-cutting — Disney’s most recent quarter was actually very good.

Broadly speaking, the company’s cord-cutting headwinds eased up, while the rest of its operating segments remained on fire. Plus, the company’s big, new streaming platform, ESPN+, had a successful launch.

On the Media Networks side, revenues rose 3%, which is one of the best quarters in recent memory. Operating income still fell, dragged down by cord-cutting, but the decline was significantly less severe than last quarter. This sequential improvement is a positive sign that maybe the worst is over in terms of cable weakness.

Meanwhile, Disney’s new ESPN+ platform, which is part one of the company’s big pivot into streaming, had a successful launch. Management didn’t share any specific numbers, but they sounded bullish about the platform on the call while saying that a lot of people signed up for the free trial and that conversion rates have been good. Thus, there is reason to be optimistic regarding a streaming-led turnaround in Disney stock starting soon.

The Parks business turned in another amazing quarter, with revenues up 13% and operating income up 27%. Everything across the board was up. Average ticket was up. Traffic was up. Hotel rates were up. Merchandise spending was up. The only negative here was that Shanghai Disneyland traffic was challenged in the quarter due to adverse weather, but once the weather got better in March, traffic trends improved.

The Studio business also turned in an amazing quarter, as expected. For Q2, this segment was all Black Panther. But that momentum isn’t going to slow. The Marvel Cinematic Universe is entering its climatic ending with two Infinity War movies (the first of which was a huge hit), while the Star Wars franchise continues to pump out movie after movie.

Interestingly, management flirted with the idea that there could be more Avengers movies on the call by saying that there are 7,000 characters from the Marvel universe, any of whom Disney could make a movie about. Thus, the Studio business should remain red-hot into the foreseeable future, and that will only boost adoption rates for Disney’s 2019 streaming platform (all this content will presumably flow straight into the streaming platform).

Should I Buy Disney Stock?

Despite the strong quarter, Disney stock traded lower in response.

That reaction seems unnecessarily short-sighted to me. Disney earnings were good. Investors choosing to focus on persistent cord-cutting weakness are missing the big picture. Disney is moving past those headwinds by pivoting into streaming, the benefits of which will be obvious 2 to 3 years down the road.

Also, considering the robust demand for Disney’s slate of animated, superhero and Jedi content, Disney’s 2019 streaming platform (which will have all that content in one place) will likely have equally robust demand.

This pivot doesn’t look terribly pretty right now, but that is only because of declines in the Media Networks business. Once streaming gains scale and starts to fully offset weakness in cable, Disney’s numbers across the board will look very, very good because each of its other operating segments are on fire.

As such, Disney stock does look like a good buy here and now. Cord-cutting headwinds will ease. Streaming tailwinds will accelerate. And everything will head higher.

Bottom Line on Disney Stock

Near-term weakness in Disney stock seems to be the result of an unnecessarily near-sighted bear thesis.

Zoom out, and the big picture on Disney stock looks a lot prettier. Thus, for investors with a long-term horizon, Disney stock is a must-own.

As of this writing, Luke Lango was long DIS.