8 Best Robinhood Stocks to Buy According to Analysts

2. The Walt Disney Company (NYSE:DIS)

Average Upside Potential: ~30.8%

Number of Hedge Fund Holders: 108

The Walt Disney Company (NYSE:DIS) operates as an entertainment company. JPMorgan reiterated an “Overweight” rating on the company’s stock, maintaining a price objective of $130.00. The firm’s analysis showcased the healthy role of the company’s Parks & Experiences division in its revenue and operating income. As per the firm, this segment is projected to remain a critical contributor to The Walt Disney Company (NYSE:DIS)’s financials, despite continuous expansion of its Direct-to-Consumer (DTC) sector.

The analysts lauded the uniqueness of the company’s parks in the media landscape, demonstrating the ability to establish interactions with IP and franchises with the help of rides, merchandise, and characters. The firm highlighted a bullish stance on The Walt Disney Company (NYSE:DIS)’s long-term earnings potential of its Parks & Experiences business, thanks to the investments in new capacities, cruises as well as pricing strategies. JPMorgan’s report highlighted the company’s operational strategies, showcasing that The Walt Disney Company (NYSE:DIS) has significant control over its success, amidst the factors impacting the consumer discretionary businesses.

Meridian Funds, managed by ArrowMark Partners, released its Q2 2024 investor letter. Here is what the fund said:

“The Walt Disney Company (NYSE:DIS) operates a diversified entertainment business with theme parks, media networks, and streaming services. We own Disney because we believe its strong brand, valuable IP, and expanding streaming offerings will drive sustainable long-term growth. The company’s stock, however, underperformed in the quarter due to concerns about a slowdown in growth at its theme park division. While park revenue still grew by 10% year-over-year, management’s commentary suggested a moderation in post-pandemic demand and rising costs, leading to a disappointing outlook for park operating income in the second half of the year. This overshadowed the positive news that the company’s streaming segment, driven by strong subscriber growth at Disney+, reached profitability ahead of schedule. We held our position and will continue to monitor the performance of the theme park division.”