Billionaire Steve Cohen’s 10 Large-Cap Stock Picks With Huge Upside Potential

3. The Walt Disney Company (NYSE:DIS)

Market Cap as of April 24: $157.80 Billion

Point72 Asset Management’s Equity Stake: $345.19 Million

Analysts’ Upside Potential as of April 24: 44.11%

Number of Hedge Fund Holders: 108

The Walt Disney Company (NYSE:DIS) operates as an entertainment company worldwide through three segments: Entertainment, Sports, and Experiences. Amid the diversified entertainment empire, its stock has underperformed the overall market, tanking by about 22% year to date. Nevertheless, Wolfe Research upgraded the stock to an Outperform from Peer Perform and set a price target of $112.

The bullish stance stems from The Walt Disney Company (NYSE:DIS) delivering better than expected first quarter fiscal 2025, underscoring growth in various segments. Disney generated a 5% increase in Q1 2025 revenue to $24.7 billion and a 35% increase in earnings per share to $1.40. The company’s long-term prospects hinge on its direct-to-consumer streaming business led by Disney+, which is in high demand despite the higher subscription prices. The segment saw a 9% increase in revenue to $6.1 billion.

Thanks to significant intellectual property, The Walt Disney Company (NYSE:DIS) is poised to become a streaming giant as it prepares to launch a flagship ESPN streaming service. Disney’s parks, cruises, and consumer products segment are other important growth drivers, given the high barriers to entry into the industry. On the other hand, the linear cable television segment remains under pressure, having suffered a 7% setback in sales as the cord-cutting menace gathers steam on the advent of streaming services.