10 Best Communication and Media Stocks To Buy According to Hedge Funds

02. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 92

The Walt Disney Company (NYSE:DIS) ranks second on our list of 10 best communication and media ttocks to buy according to hedge funds. On June 25, Goldman Sachs initiated coverage on The Walt Disney Company (NYSE:DIS), assigning a Buy rating to the entertainment powerhouse’s stock and setting a price target of $125 per share. Analysts at the firm highlight The Walt Disney Company (NYSE:DIS) robust content pipeline as a critical factor driving potential growth in the mid-term. In its latest quarterly earnings report announced on May 7, The Walt Disney Company (NYSE:DIS) reported a normalized earnings per share of $1.21, exceeding expectations by $0.11. The company posted revenue of $22.08 billion, which fell short of forecasts by $60.06 million.

During Q1, 2024 the count of hedge funds holding positions in The Walt Disney Company (NYSE:DIS) rose to 92 from 89 in the prior quarter, as reported by Insider Monkey’s database encompassing 920 hedge funds. These holdings collectively amount to around $8.45 billion. Nelson Peltz’s Trian Partners emerged as the leading shareholder among these hedge funds during this timeframe.

Mar Vista Focus strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its first quarter 2024 investor letter:

“The Walt Disney Company’s (NYSE:DIS) latest financial results displayed considerable progress, leading to an increase in stock price. The most noteworthy factor was the improved performance of its streaming business. With media profitability recovering, management is optimistically guiding for 20% earnings growth in 2024. This positive outlook is also supported by lower costs and robust performance from its parks division.

Walt Disney’s streaming service is on track to become profitable by its fiscal fourth quarter. This aligns with our original investment thesis, which expected the direct-to-consumer (DTC) business to move from a loss of $2 billion to a profit of $1 billion. Even after the recent stock price increase, Walt Disney remains undervalued relative to Netflix. We expect this gap to shrink as its streaming business matures and becomes increasingly profitable over the next few years.”