Along with cruise ships and airlines, theme parks might be the ultimate recovery investment in the wake of the COVID-19 pandemic. Of course, there’s no company with a bigger presence in theme parks than The Walt Disney Company (DIS).

Don’t misunderstand – Disney is also a thoroughly modern company with a firm and growing foothold in the content-streaming revolution. In other words, even if the post-pandemic return to normalcy is stalled, Disney is sufficiently diversified to withstand the rough patches.

That being said, it’s understandable if Disney’s stockholders are rooting for a swift return to pre-pandemic conditions. Unfortunately, though, the emergence of the Delta variant strain of COVID-19 may negatively impact Disney’s bottom line.

That’s a harsh reality, and one that Disney’s investors will have to face. Nonetheless, there are reasons to stand by Disney, and even expect the company’s growth trajectory to persist despite the challenges. (See Disney stock charts on TipRanks)

A Quick Look

Is DIS stock stalled out, or just taking a breather? The answer depends on your perspective.

There’s no denying that from mid-May through early August, Disney stock went absolutely nowhere. For months on end, the share price just ground sideways, clinging to the $175 level.

That type of price action (of lack thereof) can be frustrating. Yet, patience is the key that unlocks the biggest gains in the financial markets – and a generous helping of big-picture perspective doesn’t hurt either.

Think of it this way: DIS stock rallied from $118 in late October of last year, to the $175-ish price where it stood in August. That’s a gain of around 48% in less than a year.

That’s an astounding rate of return for a so-called “safety stock.” Hence, it’s perfectly natural and sensible for Disney stock to take a breather and go sideways for a while.

Also, as the old saying goes, “The longer the base, the higher in space.” This means that a long period of sideways action after a rally might just be the launching pad for another big leg up.

Annual Passes Are Back

Skittish Disney investors might be looking around for signs that folks are ready to enjoy theme parks again.

So, here’s one: annual passes are back at Disneyland, after the program was suspended in January.

Or at least, they’ll reportedly be back soon, with modifications. Apparently, Magic Key holders will now need to make advance reservations to the park.

Additionally, you may or may not like the new pricing schedule. Disneyland’s new annual passes will start at $399 per year for Southern California residents. However, the price tiers for pretty much everyone else will be $649, $949, and $1,399.