13 Most Undervalued Blue Chip Stocks To Buy According To Analysts

4. The Walt Disney Company (NYSE:DIS)

Forward P/E, as of September 22: 18.9

Analyst Upside Potential, as of September 22: 23%

Number of Hedge Fund Holders: 92

The Walt Disney Company (NYSE:DIS) is a multinational mass media company that ranks fourth on our list of the most undervalued blue chip stocks to buy according to analysts. The business operates across five major segments including media networks, parks and resorts, studio entertainment, consumer products, and interactive media.

In the fiscal third quarter of 2024, the company reported revenue worth $24.5 billion, up 7% year-over-year. While its revenue was partially driven by its world-famous parks, Its domestic parks and cruise chips segment accounted for 60% of operating income.

Additionally, Walt Disney (NYSE:DIS) received countless nominations for its movies and shows and broke records by bagging its 60th Emmy on the 76th Emmy Awards Show. There is no denying that Walt Disney (NYSE:DIS) has a competitive edge. It is home to some of the world’s biggest studios, including Pixar, Marvel, and Lucasfilm, all categorized as intellectual property, making it quite impossible for any rival to copy.

Recently, Walt Disney (NYSE:DIS) signed an agreement with the National Basketball Association, allowing Disney to stream all related NBA events on ESPN’s direct-to-consumer platform launching in 2025. While there may be questions over Disney’s 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 23% upside from current levels. 92 hedge funds held positions in the stock at the end of Q2 2024. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $787.9 million.

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.”