Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, entertainment giant Walt Disney (NYSE:DIS) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Disney's business, and see what CAPS investors are saying about the stock right now.

Disney facts

Headquarters (founded)

Burbank, California (1923)

Market Cap

$41.65 billion


Movies and entertainment

TTM Revenue

$37.84 billion


CEO Robert Iger (since 2005)
CFO Thomas Staggs (since 1998)

Major Properties

Pixar, ABC, ESPN, Walt Disney World, Disneyland

Return on Equity (average last three years)



Time Warner (NYSE:TWX)

CAPS members bullish on DIS also bullish on

General Electric (NYSE:GE)

CAPS members bearish on DIS also bearish on

Citigroup (NYSE:C)
General Motors (NYSE:GM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 3,378 of the 3,665 members who have rated Disney -- some 92% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include youngblood58 and CAPS All-Star TMFBuck.

Earlier this month, youngblood58 wrote that Disney is "one of the most recognized brands around the world. The current economic conditions haven't helped, but entertainment companies tend to thrive in recessions -- especially in box office receipts (Hanna Montana), DVDs and lower-end merchandise."

In a pitch just three days later, TMFBuck agreed, citing Disney's strong business and weak stock price as an ideal investment combination:

The time is right to pick up some of the mouse. If you look back about 8 to 10 years and you compare that Disney to today's version I believe this business has gotten much stronger. The leadership team, which is led by Iger is much better. Creativity is flourishing again thanks to the acquisition of Pixar and John Lassiter. Their EPS has increased from $.56 to $2.25 in 2007. Their revenues have increased from $25 billion to $35 billion. Their shares outstanding has decreased slightly. All this and the stock price has moved down from $38/share to around $22 today. I think it's more than a fair price for this iconic brand.

What do you think about Disney, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Walt Disney and Apple are Motley Fool Stock Advisor picks. The Fool's disclosure policy always gets a perfect score.