We recently compiled a list of the Jim Cramer Highlighted Buying Opportunities in 13 Stocks. In this article, we are going to take a look at where The Walt Disney Company (NYSE:DIS) stands against the other stocks Jim Cramer recently talked about.
Jim Cramer, the host of Mad Money, took a moment on Wednesday to reflect on the latest market developments as earnings season progresses, sharing his thoughts on how investors can identify stocks that are unfairly punished and present solid buying opportunities.
“This market has the memory of a mayfly that creates a ton of opportunities so… I want to help you find them.”
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Cramer stressed that time and again, he has seen growth stocks severely impacted by minor bits of bad news, such as small downgrades or slight concerns about a quarter’s performance. In these cases, he noted, the punishment rarely fits the crime, if a real issue even exists.
Cramer also recently weighed in on the ongoing trade tensions with China. He urged Wall Street to start taking President Trump’s policies more seriously, pointing out that Trump had negotiated a deal that granted China a much lower tariff than Canada received. Cramer dismissed the idea that China’s response was an equal counterattack, calling such a notion “nonsense” and “idiocy.” He added:
“Now, if Wall Street took Trump seriously, they’d know that China played softball with its retaliation just like Trump played softball with that 10% tariff.”
He elaborated that much of the recent panic, which had escalated on Sunday night, shifted a bit to optimism, as people began to realize that the president had managed to negotiate a deal. Acknowledging the presence of hardliners within the White House who are keen on taking a tougher stance on China, Cramer noted that those individuals had lost the battle.
He pointed out that Trump’s objective was to broker a deal that could generate revenue for the U.S. Treasury while providing American businesses with opportunities in China. Cramer emphasized that this goal should have been clear to anyone who had been watching the Chinese stock market, as stocks that trade in China surged recently.
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money on February 5. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 76
Starting his list of solid buying opportunities in the stock market these days, Cramer mentioned The Walt Disney Company (NYSE:DIS) and said:
“This morning, for instance, Disney reported. It was a terrific quarter, theme parks, much better than expected, movies, fantastic, TV sports, real positive but there was this one line involving Disney’s streaming property. When it raised prices, there were some churn and subscribers dropped by 1%. Oh no, the genius traders said to themselves, Netflix had no churn when it raised prices, so let’s bury this stock. These wise men and women sold Disney down into oblivion, not thinking about two things.
One, Netflix is a beast, the best of the best without compare. And two, Netflix doesn’t have parks or cruise ships or even a fraction of Disney’s intellectual property. I bet that in a few weeks, people will forget why they sold Disney stock down, and the stock, it will be higher.”
The Walt Disney Company (NYSE:DIS) manages a wide range of businesses, including film and TV production, streaming services, and theme park operations. Cramer has been bullish on the stock for some time and in January, he commented:
“Disney, I turned to Jeff Marks today, it was at $106, I said, when should we buy back that stock that we sold much higher? I think you got a great price today. I think Disney is a remarkable company and people are selling it because of the fires in Los Angeles. I feel horrible about what’s happening in Los Angeles, but I do not think the franchise of Disney is gonna be down for long very much.”
Overall DIS ranks 1st on our list of the stocks Jim Cramer highlighted recently. While we acknowledge the potential of DIS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
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Disclosure: None. This article was originally published at Insider Monkey.