The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they're checking out Disney. This company is up an impressive 31% in 2012 compared with a roughly 5% gain for the Dow average as a whole.
John and David gave Disney an outperform call earlier in 2012, thinking it would beat the market over the next five years. So far, the stock is out in front. The company continues to perform well as sales growth has been consistently in the mid-single digits. Management has been able to leverage that into faster earnings growth -- that's an impressive accomplishment considering the pressure from competitors like DreamWorks, News Corp., and CBS. David and John are sticking with their outperform call -- and it's not because of the 1.2% dividend yield. Disney has some great businesses and a solid management team. All of that will help the stock beat the market over the next five years.
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