We recently published a list of the 12 Best Stocks Under $100 to Buy According to Hedge Funds. In this article, we are going to take a look at where Walt Disney Co. (NYSE:DIS) stands against other stocks under $100 to buy according to hedge funds.
On April 21, Chris Davis of Davis Advisors appeared on ‘The Exchange’ on CNBC to talk about selectivity in today’s market. Davis pointed out that putting companies in groups like the MAG7 covers their underlying businesses, which can have different fundamentals and therefore prospects. For this reason, he acknowledged that he owns certain stocks from MAG7 but not all. Davis also clarified that his overall focus is on value and growth, which leads him to a diverse set of holdings and not just tech, such as financials and healthcare names. He then argued that the market is shifting back toward selectivity and active management. He suggested that active management is positioned for a resurgence because the indexes have become highly concentrated and richly valued.
Davis acknowledged that while he cannot predict the market’s short-term movements, the present environment is ideal for stock pickers who can identify resilient businesses that are trading at reasonable valuations. He sees this as an opportunity for active management to outperform, as investors move away from momentum-driven index investing toward a more selective approach. He noted the growing popularity of actively managed ETFs as evidence that investors are beginning to act on this shift away from index concentration. He also believes that within the MAG7, only a few companies are truly well-positioned. Similarly, within the S&P 500, only 5% to 10% of companies possess the resiliency and durability needed for such volatile times.
Davis laid out what he sees as the major transitions shaping the current investment environment. First, he described the shift from nearly 15 years of free money to a more normal interest rate environment. Second, he pointed to the end of a multi-decade era of globalization, which was replaced by deglobalization, rising nationalism, and geopolitical tensions. Third, he highlighted the impact of AI. He said that these transitions are occurring against a backdrop of market complacency, with high valuations and concentrated growth expectations.
Our Methodology
We first used the Finviz stock screener to compile a list of the top stocks that were trading under $100 as of April 22. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
Walt Disney Co. (NYSE:DIS)
Share Price as of April 22: $84.00
Number of Hedge Fund Holders: 108
Walt Disney Co. (NYSE:DIS) is an entertainment company that operates through three segments: Entertainment, Sports, and Experiences. It produces and distributes film and television content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks.
In Q1 2025, growth in the company’s Experiences business contributed to its overall positive results. Disney has now provided guidance for 6% to 8% growth for 2025 in this segment. This growth is fueled by the launch of the Disney Treasure cruise ship. The ship started with strong bookings and excellent initial guest feedback, aligning with the standards of the company’s other ships. Disney anticipates that this new ship will be profitable in its first quarter of operation.
Bernstein analysts, led by Laurent Yoon, recently reiterated an Outperform rating on Walt Disney Co.’s (NYSE:DIS) stock, while maintaining a price target of $120. This sentiment came from the multifaceted nature of the company’s operations, which consist of Linear/Sports, Parks, and streaming segments, with each possessing unique challenges and opportunities. Over the mid-term, Bernstein expects Disney to witness margin expansion in its DTC segment and additional cruise ship capacity.
Overall, DIS ranks 5th on our list of the best stocks under $100 to buy according to hedge funds. While we acknowledge the growth potential of DIS, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
