Disney Is A Strong Buy: The Flywheel Is Spinning Again

Jeffrey Adams
498 Followers

Summary

  • Disney's recent Q3 earnings beat expectations, with streaming businesses achieving profitability, despite a slowdown in the Experiences segment due to macroeconomic headwinds.
  • I believe Bob Iger's leadership and the strategic $60 billion investment in parks and cruises will drive long-term growth and profitability.
  • Disney's DTC services, now profitable, are poised for significant growth, leveraging premium IP and strategic initiatives like password-sharing crackdowns and bundling.
  • With a promising film slate and historically cheap valuation, I rate Disney as a "Strong Buy" with a price target of $172.

Walt Disney Studios, Paris

Razvan

Thesis

I began purchasing shares of Disney (NYSE:DIS) last fall, building out a solid stake in the high $70s to low $80s range. I aimed to make the "Mouse house" one of my largest positions (+10% weight) but could only reach about 5% before the stock surged

This article was written by

498 Followers
I'm an individual value investor currently working towards my bachelor's degree in Finance at Florida State University, with the goal of earning my CFA. My passion lies in equity research and fundamental analysis, and I credit Tom Hayes, Founder and Chairman of Great Hill Capital, LLC, for greatly influencing my investment strategy. I've also drawn inspiration from legendary investors like Ben Graham, Warren Buffett, Charlie Munger, Peter Lynch, Seth Klarman, and Michael Burry. My investment strategy is pretty straightforward: I look for high-quality companies that are selling below their intrinsic value. I favor sustainable, wide-moat businesses with strong cash flow, shareholder-friendly management, and near-term catalysts to unlock value. A lot of my investments are in turnaround situations - whether it's an entire sector that's been left for dead or a unique company-specific situation, I try to find companies that are temporarily impaired yet priced as if in permanent decline. I like to hold a pretty concentrated portfolio of around 8 to 12 stocks, with my top 5 positions usually making up more than 60% of the total. My investment horizon is typically 3 to 5 years, a key advantage when it comes to dealing with Mr. Market's short-term impatience. "Many shall be restored that now are fallen, and many shall fall that now are in honor." - Horace

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About DIS Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DIS

Related Stocks

SymbolLast Price% Chg
DIS
--
DIS:CA
--