5 Stocks that Rebound After Recessions

Page 5 of 5

1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 113   

The Walt Disney Company (NYSE:DIS) operates as an entertainment company. The company recently forecast that most subscribers to the digital Disney+ service are likely to choose the subscription plan that comes with advertisements as opposed to paying extra for no ads.  The firm expects around two-thirds of Disney+ subscribers to be on the discounted ad-supported plan in time. The company claims that the advertisement load on the ad plan will be four minutes of ads per an hour of content. 

On May 12, RBC Capital analyst Kutgun Maral kept an Outperform rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $176 from $210, noting that “ongoing macro pressures and recessionary fears will likely continue to weigh on sentiment” despite strong momentum in the parks business. 

At the end of the first quarter of 2022, 113 hedge funds in the database of Insider Monkey held stakes worth $5.1 billion in The Walt Disney Company (NYSE:DIS), up from 111 the preceding quarter worth $6.9 billion.

In its Q4 2021 investor letter, ClearBridge 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:

“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe Disney is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”

You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.

Page 5 of 5