Please ensure Javascript is enabled for purposes of website accessibility

Disney: The One Stock I Am Buying and Holding Forever

By Neil Rozenbaum - Updated Jun 23, 2021 at 4:42PM

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

Disney is coming out of the pandemic bigger and stronger than ever.

In this video, I talk about three reasons Disney (DIS 2.21%) is a must-buy and a stock to own forever. With the parks reopening at close to full capacity, you can expect a great third quarter from Disney. And that's what makes it one of the best stocks to buy right now, in my opinion. Disney also ranks third in the top 100 most powerful brands in 2020 and fifth on the list of most loved brands. 

Better than before

Disney's revenue is already at higher levels than before COVID-19. This year's second-quarter revenue came in at $15.61 billion, which is 4.6% higher than Q2 revenue in 2019, which was $14.92 billion.  

With summer around the corner, we can expect Disney's parks to be full almost every day. That will translate into very strong Q3 numbers. But it's no secret that Disney vacations become increasingly expensive each year. According to a new Insider poll, people who make less than $75,000 per year are the most likely to consider visiting Disney destinations, and people with a yearly income between $150,000 and $199,999 were the least interested. So there's fear of Disney pricing out their most loyal fans. As of now, there are no signs of this happening but it's something to consider. And as we exit the pandemic, wouldn't it be better to lower prices to attract more fans? 

Disney's content

Disney+ is the obvious reason Disney faired well during the pandemic. The streaming platform has reached 100 million subscribers in record time, and for each new country it enters, Disney+ attracts new subscribers.

This quarter, Disney+ made several popular titles available to subscribers. According to some analysts, nearly 700,000 households paid for the privilege to stream Cruella. And more recently, Loki, the third Marvel original series to be released on the platform, scored the highest in first-day viewership, with an estimated 890,000 households tuning in.

Now that theaters are reopening Disney also has some great movies coming out on the big screen. To give you a sense of how popular Disney's movies are, in 2019, six of the highest-grossing films were Disney movies. 2020 was an off-year but in 2021, Disney already has two movies in the top five. You can expect the next installments of Marvel movies to top the charts as well. 

Data is king

With the great mix between parks, Disney+, movies, and merch, Disney now has a ton of data it can work with. It can see what's the most popular show on Disney+ and release merch specifically for that. If a TV show becomes a fan favorite over the long term, Disney can make a movie. And if it stays relevant for long enough, Disney could include it in one of its parks. As we move toward more virtual and immersive experiences, Disney will most likely be able to adapt and create accordingly. The possibilities are endless. And that's what makes Disney a stock you must own forever.

Watch the video below for the full insights.

*Stock prices used were the closing prices of June 21, 2021. The video was published on June 22, 2021.

Neil Rozenbaum owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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
$124.26 (2.21%) $2.69

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

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.