Disney (DIS -1.82%) stock isn't looking very magical at the moment. While the market as a whole rallied in the first half, the entertainment company missed out on the excitement. The stock rose less than 3% in the first six months of the year. This is even after longtime Chief Executive Officer Bob Iger returned and launched a plan to boost growth.

Over Iger's previous tenure, the company's earnings climbed, and the stock price soared. It's possible this could happen again -- if Iger's strategy works. He has until the end of next year to see it through. Meanwhile, should you buy, sell, or hold Disney stock? Let's find out.

Growing the streaming service

First, a quick summary of Disney's recent past. The company put everything into growing its streaming services over the past few years. That resulted in strong growth in subscribers, but it came at a cost. The direct-to-consumer business -- which includes streaming -- posted increasing losses. By the end of last year, the operating loss had reached $4 billion from $1.6 billion a year earlier.

Disney brought back Iger to turn things around. He is known for such successes as the launch of the animated film Frozen and the acquisition of Marvel. Iger set to work quickly, cutting costs and reorganizing departments to put the focus back on creativity. Earlier this year, he said the company would target $5.5 billion in cost savings.

The efforts have begun to bear fruit. For example, in the most recent earnings report, Disney's direct-to-consumer business saw its operating loss narrow to $659 million from more than $800 million year over year. And it improved by $400 million sequentially from the prior quarter. That's thanks to cost cuts and revenue increases.

Meanwhile, Disney's strongest business -- parks, experiences, and products -- continued to shine. That unit reported double-digit growth in both revenue and operating income year over year.

Still, as mentioned above, Disney's shares haven't reflected this progress. Now, let's consider our question. Should you buy the stock? Disney has underperformed this year. And even if Iger has made progress, the company still is dealing with a significant loss at its streaming businesses.

Tough times at the box office

Disney also faces tough times at the box office. Its most recent release, Indiana Jones and the Dial of Destiny, missed expectations during its premiere weekend. This could be linked to the movie itself, but it's also a reflection of people favoring movies on their screens at home over going to a theater. That's a concern because it could hurt Disney's future releases too.

Finally, Disney's robust parks business may be vulnerable this year if the economy slips into a recession. People may hold back on spending, and that could mean cutting out trips to Disney.

All of these factors could prevent Disney shares from taking off right away. But it's important to take a long-term view of a company as you examine the stock. From that perspective, the box-office headwind could be a concern. But I'm generally optimistic about Disney, especially considering Iger's work so far. Disney's parks, experiences, and products business continues to grow in the double digits. And the parks themselves remain the most visited among theme parks worldwide.

Iger also is making considerable progress to contain costs and bring Disney+ to profitability by the end of 2024, according to the original goal.

Today, Disney shares are trading for about 22 times forward-earnings estimates. This seems pretty reasonable when you look at the positive points I've mentioned.

All of this means I would favor buying Disney shares today at this bargain price or even adding to holdings. I wouldn't expect to sell the shares and make a great gain right away. Instead, I would hold on for the long term to benefit from the company's recovery and what should be a new phase of growth down the road.