10 Most Promising Long-Term Stocks According to Hedge Funds

7. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 92

Analyst Upside as of October 13, 2024: 22%

The Walt Disney Company (NYSE:DIS) is a mass media multinational company that ranks seventh on our list of the most promising long-term stocks according to hedge funds. The company operates across five major segments including media networks, parks and resorts, studio entertainment, consumer products, and interactive media.

The Walt Disney Company (NYSE:DIS) holds dominance in the media industry and we say that because of its intellectual property. Walt Disney owns some of the world’s biggest studios including Pixar, Marvel, and Lucasfilm, impossible for competitors to replicate. In addition to that, the company has received countless nominations for its awards and shows. It recently bagged its 60th Emmy at the 76th Emmy Awards Show.

The company’s exquisite partnerships further enhance its position as a mass media giant. Recently, The Walt Disney Company (NYSE:DIS) signed an agreement with the National Basketball Association allowing it to stream all NBA events on ESPN’s new platform launching in 2025.

Overall, saying Walt Disney is a market leader in media will not be a hyperbole. While some investors and analysts share concerns over Disney’s future profitability, its direct-to-consumer services like Disney+, Hulu, and ESPN+ are promising, logging their first operating profit in the fiscal third quarter of 2024.

Analysts are bullish on DIS and their 12-month median price target of $115 points to a 22% upside from current levels. According to the Insider Monkey database, 92 hedge funds held positions in the stock at the end of Q2 2024.

Mar Vista Investment Partners’ 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.”