Jim Cramer’s Top 12 Must-Watch Stocks

3. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Investors: 92

Jim Cramer stated that he has a stronger preference for The Walt Disney Company (NYSE:DIS)’s stock compared to Universal Studios. He acknowledged that he prefers The Walt Disney Company (NYSE:DIS) instead.

“Universal Studios have just been emerging from a tough period. I’m not into the stock or its growth rate. I actually prefer Disney’s stock, and that’s saying something.”

The Walt Disney Company (NYSE:DIS)’s vast library of popular franchises and new content from Disney+, Marvel, Star Wars, and Pixar continues to attract and engage subscribers, which is essential for the success of its streaming service.

In its recent Q3 2024 earnings report, The Walt Disney Company (NYSE:DIS) reported impressive revenue of $22.3 billion, along with a significant recovery in theme park attendance and an adjusted earnings per share of $1.09 that beat analyst expectations. The rebound in its parks and experiences segment, supported by the reopening of international parks and expansion plans, is expected to drive further growth.

The Walt Disney Company (NYSE:DIS) is also working to improve the profitability of Disney+ through strategic price changes and content optimization. With a strong lineup of upcoming films and series, along with plans for international expansion, The Walt Disney Company (NYSE:DIS) is well-positioned to leverage its strengths and benefit from recovery trends, suggesting a bright future for the company.

Mar Vista Focus strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its Q2 2024 investor letter:

“The Walt Disney Company’s (NYSE:DIS) shares declined after its earnings release, even though the company exceeded recently upgraded financial forecasts. While Disney+ and Hulu reached a milestone by turning their first quarterly profit, the company cautioned about theme park attendance returning to pre-pandemic norms. This signals a deceleration following a period of exceptional growth, impacting the stock as theme parks and experiences account for roughly 60% of Disney’s earnings.

Despite broader consumer worries, Disney’s stock is still trading with a significant discount to fair value. We expect the gap between Disney’s market price and its intrinsic value to shrink as its streaming division evolves and increases profitability over time.”