5 Stocks to Buy When Everyone is Selling

4. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 111  

The Walt Disney Company (NYSE:DIS) operates as an entertainment company. The stock is trading at nearly 40% below record highs amid park closures due to COVID-19. However, these closures do not represent a long-time concern as most economies around the world have returned to normal and those remaining are likely to follow suit soon. The firm is impressing on the streaming front, with subscribers growing 33% year-on-year in the second quarter. The company has pricing power with a massive original content library to draw from as well. 

On May 12, BMO Capital analyst Daniel Salmon maintained a Market Perform rating on The Walt Disney Company (NYSE:DIS) stock with a price target of $140, highlighting that the stock was “the type of blue chips investors will want to buy once the market stabilizes”. 

At the end of the fourth quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in The Walt Disney Company (NYSE:DIS), up from 101 the preceding quarter worth $9.4 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.”