Why Disney Stock is a Buy and Hold!
This week’s new addition to my long term portfolio.
I consider Disney to be undervalued at the moment. According to Tipranks, the market price target is $132.36 which represents an upside of 13.51% to the current price. This also matches the price to fair value of 12% coming out of Morningstar.
Disney is a global media company that everyone knows. Since our childhood, we are surrounded by Disney characters and the younger generation follows the same path. Disney was able to keep profiting from our parents' generation, ours and the next ones to come.
Later this year, we will get to know a new streaming service, Disney +, which will be a game changer in my opinion. One simple and high valued differential is content.
Disney is the king of content, with world-class material!
Also, Disney is a major shareholder of Hulu, the 3rd streaming service in the U.S. I guess, the management team will take a lot of lessons learned from them.
Throughout the years, Disney acquired top-notch companies like Marvel, Pixar, and Lucasfilm. These proven to be fantastic acquisitions which increased exponentially the value of Disney.
Captain Marvel is killing it in the box office and surpassed the $1billion mark.
Therefore, management seems to know what is doing and I am confident.
Let’s not forget about the theme parks. Year after year, I have friends and friends taking the so-called “Disney vacations”. These are money-making machines for Disney.
Taking all of these into account, I am quite bullish on Disney for the long-term and added it to my long-term portfolio. On top of that, it yields a 1.5% dividend in line with the 5-year average. The payout ratio is still low at 23% leaving space for future increases.

Financials look steady and growing. Disney is not a high-growth company but steady. Although investors are bullish on Disney +, there is a long road ahead to be a top competitor in the space.
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Disclaimer: I am not a financial advisor. Always do your own research when investing.
