Walt Disney DIS -0.58% movies and theme parks have captured the hearts of millions, but its stock performance has been less than enchanting. Shares of the company, once a favorite of growth-seeking investors, are down nearly 60% from their peak in 2021. With the CEO poised to make some tough decisions to restore the mouse house to its former glory, there is an opportunity for the depressed stock to rise.

Perhaps Florida Governor Ron DeSantis, who decided to make an example of Disney for its opposition to a state law passed under his administration, would play the role of the wicked witch, and the recent box office slump could be blamed on evil spells cast over the land.

But that’s the real world, and in the real world, Disney is suffering from its own mistakes. The company is spending big on streaming, where profits remain elusive, while cable TV revenues continue to deteriorate. The company’s latest movies, such as “Elementary” and “Indiana Jones and the Dial of Doom,” fall short of the level set by “Barbie,” “Oppenheimer” and even “Super Mario Bros. Movie.” To remedy the situation, Iger, who retired in 2020, returned as CEO, succeeding Robert Chapek.

Iger can’t be described as Prince Charming, but he has made it clear that it’s a whole new world for the media titan. By extending his contract for two years, through 2026, Iger has been given time to realize his vision for the company’s growth, which is based on two pillars: streaming and theme parks. Everything else, including Disney’s cable channels, could be up for sale. Disney is also taking steps to ensure that its revenues return to a more sustainable path. Costs are being cut, shows are being canceled, and a course for the future is being charted, focused on what Disney does well and profitably. Even the dividend, which was suspended in 2020, could return by the end of this year. Now that the stock looks cheap relative to its earnings and mix of constituents, it seems like a good time to bet on the magic returning – at least to Disney stock.