#5 - Disney (NYSE:DIS)
And speaking of a company with multiple revenue streams, I’ve been advising investors to buy Disney (NYSE:DIS), or at least hold onto it, since the pandemic started. The company saw revenue and earnings plummet as it closed theme parks, cruise ships sat idle, and production companies were closed as part of the mitigation efforts to slow the virus.
But there’s been one shining star in the Disney universe. The company’s streaming service, Disney+, continues to grow, and now that Disney is once again producing original content, there will be more reason for consumers to stay engaged with the service. And all of this will buy the company enough time for the economy to reopen and its theme park, resort, and cruise line revenue.
In its final quarter of its fiscal year, Disney’s revenue remained down nearly 23% year-over-year (YOY). However, that was a significant improvement from the YOY drop of over 40% in the prior quarter. The company isn’t firing on all cylinders, and analysts forecast that profits will still be below the pre-pandemic level through 2022.
But I’ll take the under on that forecast. The company just received an upgraded price target that could take DIS stock over $200 in 2021.
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.
Read More - Current Price
- $112.03
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $123.58 (10.3% Upside)
