5 Best Cyclical Stocks To Invest In

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 92 

The Walt Disney Company (NYSE:DIS) operates as an entertainment company worldwide. Media reports indicate that the company is close to selling operations in India in a deal with local giant Reliance Industries. As part of the deal, Disney would sell the Disney Star business in the country to the local firm for around $10 billion. However, the Indian firm values the business at around $7 to $8 billion. Losing streaming rights to cricket, a popular sport in India, has hurt Disney business in the country. 

On October 31, Evercore ISI analyst Vijay Jayant maintained an Outperform rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $100 from $110, noting the firm was trying on a new model by splitting entertainment and sports focuses. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in The Walt Disney Company (NYSE:DIS) with 9.3 million shares worth more than $832 million. 

In its Q3 2023 investor letter, Madison Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:

“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS).  The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”