Disney - Compelling Long-Term Investment In 2019 And Beyond


Disney has a very strong and robust film line-up for 2019 with the possibility of over a half dozen films that stand to rack in over a billion dollars at the worldwide box office. Captain Marvel sets the pace in 2019 followed by Dumbo, Avengers 4, Aladdin, Toy Story 4, Lion King, Frozen 2 and Star Wars Episode 9. Disney is poised to defend its box office dominance again in 2019 for the fourth consecutive year. Disney reported robust double-digit growth in its most recent quarter and has demonstrated resilience in the midst of a broader market sell-off in Q4 of 2018. Disney has held up strongly on the heels of its streaming growth initiatives and the Fox acquisition despite the negative market sentiment. Streaming via Hulu, ESPN Plus and direct to consumer Disney branded streaming service are major catalysts moving into 2019. Disney posted robust growth at the box office and theme parks with its Media Networks remediation plan gaining strength in the backdrop. The Fox acquisition brings in properties such as Avatar, the X-Men movies, Titanic and TV shows such as The Simpsons, cable networks FX and National Geographic. Divesting its Sky stake enables Disney to decrease its debt load to acquire Fox’s media assets and make further investments in the streaming arena. Disney has been one of only a handful of stocks that has held up respectably in the face of a down market and given better market conditions investors may reward Disney with a higher multiple and further share appreciation. Disney offers a compelling long-term investment opportunity for the long term investor at an attractive valuation.  

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Disclosure: The author does not hold shares of Disney however may engage in options trading with the underlying security. The author has no business relationship with any companies mentioned in ...

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