10 Best Leisure Stocks To Buy Now

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 92

The Walt Disney Company (NYSE:DIS)’s global business segments are entertainment, sports, and experiences. The franchises and characters that the company has developed over a century provide benefits for both entertainment and experiences. The ABC broadcast network, several cable television networks, Disney+, and Hulu are examples of entertainment. Disney produces and distributes films and television shows within the category. Its content is licensed to cinemas, and other content providers or is increasingly retained in-house for use on Disney’s own streaming service and television networks. ESPN and the ESPN+ streaming service are located in the sports section. Disney’s theme parks and resorts are included under Experiences, which also gains from retail licensing.

The company is in charge of managing the transformation of the media landscape, particularly the shift away from linear television and toward direct-to-consumer, or DTC, streaming services. With its ownership of ABC, the nation’s top sports network, ESPN, and the Disney Channel, the top children’s network, Disney was well-positioned to capitalize on the traditional model. The company continues to benefit from these extremely valuable assets as the industry changes.

The firm has an unrivaled breadth of recognizable characters, brands, and content library; this will maintain demand for its streaming services and provide the company with an advantage when producing new films and TV series.

Mar Vista Focus strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its Q2 2024 investor letter:

“The Walt Disney Company’s (NYSE:DIS) shares declined after its earnings release, even though the company exceeded recently upgraded financial forecasts. While Disney+ and Hulu reached a milestone by turning their first quarterly profit, the company cautioned about theme park attendance returning to pre-pandemic norms. This signals a deceleration following a period of exceptional growth, impacting the stock as theme parks and experiences account for roughly 60% of Disney’s earnings. Despite broader consumer worries, Disney’s stock is still trading with a significant discount to fair value. We expect the gap between Disney’s market price and its intrinsic value to shrink as its streaming division evolves and increases profitability over time.”

Ken Fisher’s Fisher Asset Management is the shareholder in the company, with 7,935,049 shares worth $787.87 million.