We recently published a list of Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. Since Walt Disney Co (NYSE:DIS) ranks 4th on the list, it deserves a deeper look.
Jim Cramer in a fresh episode of “Mad Money” on CNBC said that while investing isn’t easy, it’s made even more difficult by “authentic Wall Street gibberish” and “arcane technology.” Cramer said that there’s an “entire industry” in Wall Street wanting people to think that investing is hard and “ordinary people” cannot do it on their own. Cramer said that many people in the financial industry are just “after your fees” and they aren’t interested in making money from original investing. Cramer said that hedge fund managers and mutual funds make investing look inaccessible and impenetrable.
Cramer said that he’s “pulling back the curtain” and emphasized that investing isn’t “rocket science” or “brain surgery” and you don’t need to go to a business school to understand it. Cramer pitched himself as a “coach” or a “translator” who can explain the meaning of complex financial terms to ordinary people.
“You can comprehend all the mystical-sounding vocabulary we throw around here as long as you have a translator, a coach like me, who can explain what the darn words mean.”
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. 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).
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Walt Disney Co (NYSE:DIS)
Number of Hedge Fund Investors: 92
A caller recently asked Jim Cramer during his program whether he should sell Walt Disney Co (NYSE:DIS) because of its disappointing performance. Cramer said “no!”
“Please don’t do that. My charitable trust has been buying some right here. It sells only 20 times earnings. It’s got box office success. It’s got the theme parks.”
Cramer said that the stock should not be sold and “if anything, I’d be inclined to buy some.”
Some analysts believe Walt Disney is back on a growth trajectory .JPMorgan recently increased estimates for the company and affirmed an Overweight rating. JPMorgan’s analyst likes the response to Inside Out 2 and is also hopeful on theme parks business.
“We also remain positive on the long-term outlook for Experiences given committed capital investment against available and future IP, and for F25/F26 to see help from cruise launches and easier comps at [Walt Disney World].”
Market expects Disney’s $60 billion planned investment in theme parks and experiences business to pay off. In fiscal year 2023, this segment generated $7 billion in operating income, a significant increase from $1 billion in 2004, reflecting a compound annual growth rate of over 10%.
Diamond Hill Capital Long-Short Fund stated the following regarding The Walt Disney Company (NYSE:DIS) in its first quarter 2024 investor letter:
“Other top Q1 contributors included Meta Platforms, Citigroup and The Walt Disney Company (NYSE:DIS). Media and entertainment company Walt Disney faced — and defeated — an activist campaign and proxy battle during the quarter, giving a boost to shares. Profitability has also improved — with the company announcing it expects to reach double-digits profitability in its streaming business — and it announced forthcoming capital returns to shareholders.”
Overall, Walt Disney Co (NYSE:DIS) ranks 4th on Insider Monkey’s list titled Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. While we acknowledge the potential of Walt Disney Co (NYSE:DIS), 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 Walt Disney Co (NYSE: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 is originally published at Insider Monkey.
