#7 - Disney (NYSE:DIS)
If you’re talking about a company that is committed to advancing many of the aims of the ESG movement, then it’s hard not to put Disney (NYSE:DIS) right near the top of the list. The company has a laundry list of corporate initiatives that cover many of the issues that ESG-minded investors care about.
With that said, Disney only has a 52.7% Net Impact Ratio. Still, growth is still the goal of ESG investing. And while DIS stock is lagging in the broader market, it is creating an opportunity to buy DIS stock at a discount. Hedge fund interest is increasing and the consensus price target of analysts has Disney making up virtually all of its 2021 losses.
To be fair, the pandemic has continued to be a drag on Disney’s theme park revenue. And the company’s most recent earnings report showed that it can only expect so much from Disney+. However, as a long-term stock to consider, the ability to generate revenues via several verticals makes the stock very appealing. And it will be even more so when it reinstates its dividend.
About Walt Disney
The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.
More- Current Price
- $110.41
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 21 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $125.65 (13.8% Upside)
The importance of ESG investing is drawing the attention of institutional investors who are acting on the information in two ways. First, they are increasingly aligning their businesses toward a company’s ESG performance. And second, they are demonstrating a higher likelihood of retaining their investor capital with companies that make a commitment to ESG initiatives.
And if institutional investors put their money in ESG stocks, it's likely to increase their growth potential. With that said, ESG investing requires the caveat "let the buyer beware." Some companies do a better job of honoring the intent of environmental, social, and governance issues than others. And critics say that many companies use ESG metrics as a way to ensure they stay on the radar of investors.
As you would expect, when it comes to ESG stocks there are several mutual funds and ETFs that focus on this sector. Two of the most popular choices are the iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU) and the Vanguard ESG U.S. Stock ETF (NYSEARCA:ESGV).
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