Why Disney Is Poised to Pop

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, entertainment giant Walt Disney has earned a coveted five-star ranking.

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

Disney facts

 

 

Headquarters (founded)

Burbank, Calif. (1923)

Market Cap

$98.4 billion

Industry

Movies and entertainment

Trailing-12-Month Revenue

$42.8 billion

Management

Chairman/CEO Robert Iger

CFO James Rasulo

Return on Equity (average, past 3 years)

13.6%

Cash/Debt

$3.2 billion / $17.5 billion

Dividend Yield

1.4%

Competitors

News Corp.

Time Warner


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 5,695 members who have rated Disney believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, adamlevy, succinctly summed up the Disney bull case for our community:

The cost of content is clearly rising. Netflix is spending outrageous amounts of money to grow its library, including a $1 billion deal with Disney  . However, this is just for Disney's movie segment. Its television programming is its most profitable segment and includes ESPN, ABC, and of course the Disney Channel. Disney's content products are becoming increasingly valuable, and whether it packages them in cable/satellite TV, Internet video streaming, or its own a la carte service, Disney will be able to maximize that value very well.

Of course, that short pitch doesn't even come close to telling the entire story for Disney. You're in luck, though. The Fool's brand-new premium report on Disney looks at all sides of one of the most powerful media companies in the world. You can grab your copy here, which comes with free updates for 12 months.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Disney Is Poised to Pop originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Netflix and Walt Disney. The Motley Fool owns shares of Netflix and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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