The Dow Jones Industrial Average has held up better than most major indexes over the last year. It slipped only a little during the period. Meanwhile, the S&P 500 and Nasdaq Composite Index have been hit much harder.

But that doesn't mean all of the stocks in the Dow Jones have fared relatively well. A handful of the members of the index remain well below their previous highs. Some of those declines present excelling opportunities for investors. Here's one Dow stock down 52% to buy hand over fist.

Downstream Disney

Shares of Walt Disney (DIS -1.08%) have jumped more than 10% so far in 2023. However, this gain hasn't been nearly enough to offset the stock's steep decline over the past couple of years. Disney stock is still down 52% below its previous high set in early 2021.

Concerns about the economy weighed on the stock last year. Investors were worried that high inflation would negatively affect Disney. Those concerns were at least partially justified as the company saw lower advertising revenue and compressed margins. 

But the bigger problem for the entertainment giant was its Disney+ streaming service. Sure, Disney+ gained millions of subscribers in a relatively short time. However, the average revenue per subscriber has been weak compared to other streaming services and declined further in the latest quarter.

Disney+ remains unprofitable. The unit serves as a significant drag on Disney's overall earnings. Some have even speculated that launching the streaming service was a mistake.

Why the stock could go a lot higher

If Disney wasn't doing anything about its issues, the stock would probably struggle to rebound. However, the company isn't burying its head in the sand. 

Bob Iger returned as CEO in November, after previously serving in the role from 2005 to 2020. He committed himself to getting the company back on track, and in February, Disney announced a major restructuring aimed at boosting profitability.

There are reasons to be optimistic about Disney over the near term. The company's theme parks continue to deliver strong growth, with revenue jumping 27% year over year in the first quarter of fiscal 2023. Disney has several movies on the way that are likely to be big winners at the box office, including Indiana Jones and the Dial of Destiny and Guardians of the Galaxy Vol. 3. Perhaps most importantly, Disney+ is on track to generate a profit by the end of fiscal 2024.

Income investors will also soon have a reason to buy the stock. Disney announced last month that it plans to reinstate its dividend. The company suspended its dividend program because of the COVID-19 pandemic. Now, though, Disney is confident enough about its earnings power that it intends to begin paying a dividend again by the end of this calendar year.

Disney's shares currently trade at around 24 times expected earnings. But the stock isn't too far away from being a bargain if you factor in its growth prospects. Its price-to-earnings-to-growth (PEG) ratio is slightly above 1 -- the level that legendary investor Peter Lynch considers to be an attractive price for a stock.

Unsurprisingly, Wall Street thinks that the stock will rebound. The consensus 12-month price target for Disney reflects an upside potential of more than 30%.

The king of content

While Disney has some potential near-term catalysts, the main reason to buy the stock is its long-term prospects. The entertainment world continues to change rapidly, but content will remain king. And Disney will no doubt maintain its reign as the king of content -- and the preeminent master at monetizing content.