Morgan Stanley is Recommending These 5 Stocks for 2024

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1. Walt Disney Co (NYSE:DIS)

Number of Hedge Fund Investors: 89

Walt Disney Co (NYSE:DIS) ranks first in our list of the top stocks Morgan Stanley recommended for 2024. The analyst firm said the stock has a 17% upside to its base case. Goldman Sachs recently listed Walt Disney Co (NYSE:DIS) among its top return on equity growth stocks.

As of the end of the third quarter of 2023, 89 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Walt Disney Co (NYSE:DIS). The biggest stakeholder of the media company is Nelson Peltz’s Trian Partners which owns a $2.6 billion stake in Walt Disney Co (NYSE:DIS). Peltz is currently engaged in a proxy battle with Disney and recently said in an interview that Walt Disney Co’s (NYSE:DIS) board oversight is “awful.”

Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:

“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS).  The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the JP Morgan’s Top 15 Stock Picks for 2023 and Now, and the11 Stocks Jim Cramer Recommended Selling But Billionaires Love Them.

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