Please ensure Javascript is enabled for purposes of website accessibility

Down 15%, Is Disney Worth a Look?

By Matthew Frankel, CFP® - Updated Jun 24, 2021 at 8:12AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here's why Disney could be one of the most attractive stocks to buy at a discount.

Walt Disney (DIS 8.40%) is a company that needs no introduction, but it might surprise you to learn that despite the faster-than-expected vaccine rollout and reopening progress, its stock has taken a beating lately and is now about 15% off the highs. In this Fool Live video clip, recorded on May 14, chief growth officer Anand Chokkavelu gives a rundown of why Disney could emerge from the COVID-19 pandemic an even stronger company than it went in. 

Anand Chokkavelu: Next up is one many people might predict, it's Disney. Everyone knows Disney so I'm not going to spend a lot of time on it. I'm not going to give the entire list of its amazing franchises and properties that basically make it a buy-anytime stock, at least for me, but Disney is particularly interesting now, it's a day after some relatively disappointing earnings. Last time I checked, the stock was down, maybe that's changed in the last couple hours but subscriber growth was the big reason. It's still got to 103.6 million subscribers. Same reopening headwinds that Netflix saw in its earnings. It's not something that's specific to Disney. A bigger-picture, if we step back, missing subscribers by a few million a couple of months after it announced 100 million, not a big deal. It's way ahead of schedule on Disney+. It's only a year-and-a-half old, and it's gotten a half Netflix's size. Remember what their initial game plan was, their goal was to get to 60-90 million subs by 2024, it's way past that now in 2021. Two or three years ahead of schedule, or really three years ahead of schedule on hitting that 60 million. You also have to remember that Disney plus had a tailwind because of the pandemic, other parts of the businesses had headwinds. Reopening will help theme parks, movie studio, cruises, etc. Disney will soon be running on all cylinders again. I consider one of my safer stocks. Back when I run stock through my stoplight framework, one of the questions I asked is "confidence level in my assessment." The highest grade a Company can get is "Disney-level confident." So, Disney. 

Anand Chokkavelu, CFA owns shares of Walt Disney. Matthew Frankel, CFP owns shares of Walt Disney. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$121.88 (8.40%) $9.45
Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$250.80 (2.74%) $6.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.