Based on the aggregated intelligence of 110,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, entertainment giant Disney (NYSE: DIS ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Disney's business, and see what CAPS investors are saying about the stock right now.
Disney facts:
| Headquarters (Founded) |
Burbank, California (1923) |
|
Market Cap
|
$59.25 billion
|
|
Industry
|
Diversified Entertainment
|
|
TTM Revenue
|
$37.14 billion
|
|
Management
|
CEO Robert Iger (since 2005)
CFO Thomas Staggs (since 1998)
|
|
Major Properties
|
ABC, ESPN, Disney World, Disneyland
|
|
Return on Equity (avg. last three years)
|
13.3%
|
|
CAPS members bullish on DIS also bullish on
|
Apple (Nasdaq: AAPL )
General Electric (NYSE: GE )
Google (Nasdaq: GOOG )
|
|
CAPS members bearish on DIS also bearish on
|
General Motors (NYSE: GM )
The Home Depot (NYSE: HD )
Citigroup (NYSE: C )
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 793 of the 837 All-Star members who have rated Disney -- some 95% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include kgendrich and fundamentalvalue, both of whom are ranked in the top 15% of our community.
In May 2007, kgendrich noted that, recession or not:
Disney is entertainment always and forever. With a solid management team, a consistent product, and excellent marketing, their products are approaching a critical mass. ... Entertainment is a product that is very sticky even in economic downturns.
An earlier pitch from fundamentalvalue in January 2007 shared in that optimism, citing its world-famous franchises as reasons to stay bullish:
Think about everything Disney has -- multiple theme parks in California and Florida, radio station, ABC, ESPN and other TV stations, movies (especially now that they have Pixar). They have tons of franchises, like Hannah Montana for the younger kids, Pirates of the Caribbean for everyone, and popular TV shows such as Lost, Desperate Housewives, Grey's Anatomy, and Ugly Betty, which have all won Golden Globes in their respective categories. ... I believe that [Disney] has the ability to grow, and I see the stock outperforming in the long term.
What do you think about Disney, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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