10 Best Very Cheap Stocks to Buy According to Billionaires

4) The Walt Disney Company (NYSE:DIS)

Forward P/E as of March 28: ~17.8x

Number of Billionaire Investors: 19

Number of Hedge Fund Holders: 108

The Walt Disney Company (NYSE:DIS) operates as an entertainment company. BofA Securities analysts maintained a “Buy” rating on the company’s stock with a steady price objective of $140.00. The firm’s analysts expect that its fiscal Q2 2025 will demonstrate a sequential improvement in operating income from the Experiences segment, which can accelerate further in Q3 and Q4. Overall, the analysts’ commentary strengthens the belief that The Walt Disney Company (NYSE:DIS)’s financial performance is expected to improve in the coming quarters due to strategic business segments and market conditions. Its emphasis on maintaining a healthy demand for the products and services, together with advertising strength and potential for ARPU growth in the streaming services, are regarded as the critical growth drivers.

The Walt Disney Company (NYSE:DIS)’s DTC offerings possess strong growth potential. With the company refining its content strategy and implementing strategic initiatives, there remains potential for higher average revenue per user (ARPU) than currently expected.  The success in this area can fuel significant revenue growth and drive profitability as the streaming business scales. Meridian Funds, managed by ArrowMark Partners, released the Q2 2024 investor letter. Here is what the fund said:

“The Walt Disney Company (NYSE:DIS) operates a diversified entertainment business with theme parks, media networks, and streaming services. We own Disney because we believe its strong brand, valuable IP, and expanding streaming offerings will drive sustainable long-term growth. The company’s stock, however, underperformed in the quarter due to concerns about a slowdown in growth at its theme park division. While park revenue still grew by 10% year-over-year, management’s commentary suggested a moderation in post-pandemic demand and rising costs, leading to a disappointing outlook for park operating income in the second half of the year. This overshadowed the positive news that the company’s streaming segment, driven by strong subscriber growth at Disney+, reached profitability ahead of schedule. We held our position and will continue to monitor the performance of the theme park division.”