In this article, we discuss the 5 best Dow stocks to buy according to hedge funds. For a detailed analysis of these stocks, go directly to 12 Best Dow Stocks To Buy According To Hedge Funds.
5. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 101
The Walt Disney Company (NYSE:DIS) is an American multinational entertainment and media corporation, founded by Walt Disney in California in 1923. The media giant is popular for its film division, The Walt Disney Studios, which includes flagship media brands like Walt Disney Pictures, Walt Disney Animation Studios, Pixar, and Marvel Studios, among others. Disney World is another production of the media conglomerate that has visitors from around the globe. The Walt Disney Company (NYSE:DIS) has been an immensely popular Dow stock since 1991, and it is highly sought-after by hedge funds.
On November 10, the company posted its Q3 results, announcing an EPS of $0.38, missing estimates by $0.12. The revenue for The Walt Disney Company (NYSE:DIS) totaled $18.53 billion, missing the estimated revenue by $231.82 million.
At the end of September, 101 hedge funds were bullish on The Walt Disney Company (NYSE:DIS), down from 112 funds in Q2.
Wells Fargo analyst Steven Cahall on January 4 noted that the past few months have shown that The Walt Disney Company (NYSE:DIS) will likely face some serious content obstacles if it is to meet its fiscal 2024 subscriber guidance. Given the company’s history in delivering good content, the analyst thinks it’s an attractive setup, naming it his “favorite large-cap growth idea for 2022.” The analyst has an Overweight rating and a price target of $196 on the shares.
Here is what RiverPark Funds has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2021 investor letter:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.
DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films and 15 Disney and Pixar series.
Now that the disruption in its theme park, cruise and theatrical businesses appears to be coming to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution. We also note that DIS has an extremely strong balance sheet and a growing pool of free cash flow to be used both to return to shareholders and to invest in future opportunities.”
