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Here’s How to Play Disney Stock Now

http://www.fool.com/investing/general/2013/06/21/heres-how-to-play-disney-stock-now.aspx

Tim Beyers
June 21, 2013

Say goodbye to Cinderella and Snow White. Thanks to superheroes and Jedi Knights, Walt Disney (NYSE: DIS) stock has never before reached such heights.

Officially, the shares touched an all-time high of $67.89 a share on May 16 -- not even two weeks after Iron Man 3 took the box office by storm. The film has since passed the billion-dollar mark in gross receipts worldwide, leaving fans clamoring to get Robert Downey Jr. back for a fourth go as the Armored Avenger. Mix in theme parks, ESPN, ABC, and a new Star Wars film with $2 billion potential and Disney starts to look like one of the great growth stocks of the next several years.

But investing is also a game best played in context. How does Disney stock compare to peers Time Warner (NYSE: TWX) and News Corp. (NASDAQ: NWSA)? Here's what the numbers say:

Key Statistics
Walt Disney
Time Warner
News Corp.
Current Share Price

$65.06

$58.72

$31.87

Shares Outstanding

1.80 billion

932.2 million

2.32 billion

Market Cap

$116.1 billion

$54.0 billion

$72.5 billion

Trailing P/E Ratio

19.76

18.05

12.75

PEG Ratio

1.49

1.26

1.25

Gross Margin

21.2%

45.6%

37.8%

Cash From Operations

$7.72 billion

$3.76 billion

$3.83 billion

Sources: S&P Capital IQ, Yahoo! Finance.

And here's what Fools say, going by the data available in our CAPS investor intelligence database:

CAPS Category
Walt Disney
Time Warner
News Corp.

CAPS Stars (out of 5)

*****

**

**

No. of CAPS Ratings

5,869

1,259

155

Bullish CAPS Ratings

5,520

1,068

126

Bearish CAPS Ratings

349

191

29

Bull Ratio

94.1%

84.8%

81.3%

Source: Motley Fool CAPS.

Disney, at five stars, is easily the top-rated stock of the bunch. The company's $40 billion licensing machine deserves at least some of the credit.

"Disney has always had the Midas touch when it comes