Even After Disney's Growth, Here's Why It Still Looks Cheap

Walt Disney's (NYSE: DIS) stock price has rebounded 80% since the end of March 2020. Investors are counting on continued growth with Disney's streaming services (Disney+, Hulu, ESPN+), where direct-to-consumer revenue surged 59% year over year last quarter to reach $4 billion. But management used the downtime during the pandemic to make major improvements and prepare for new attractions at theme parks. All of these initiatives could see the segment's profits reach higher levels than before the pandemic over the next few years.

Disney has big plans to expand its parks -- a segment that generated roughly half of the company's operating profit before the pandemic. Disney just opened the Avengers Campus at Disneyland Resort, and that comes as its Disney+ series Loki is seeing strong viewership after its June debut. Investors shouldn't discount the impact Disney+ could have on park visitation in the future.

Chewbacca at Star Wars: Galaxy's Edge at Disney Hollywood Studios. Image source: Walt Disney.

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Source Fool.com