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 (NYS: DIS) has earned a coveted five-star ranking.
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.
Burbank, Calif. (1923)
Movies and entertainment
CEO Robert Iger (since 2005)
CFO James Rasulo (since 2010)
Return on Equity (Average, Past 3 Years)
$3.5 billion / $13.3 billion
CBS (NYS: CBS)
News Corp. (NAS: NWSA)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93.5% of the 4,961 members who have rated Disney believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Nathan Alderman (TMFNato) and TheMiracleDJR, both of whom are ranked in the top 10% of our community.
Just last month, TMFNato listed several of Disney's positives: "A strong slate of upcoming movies, the Pixar powerhouse, and the addition of Marvel to drive box office and merchandising, should offset a weak-looking lineup at ABC. Bob Iger's a smart leader, too."
Disney even boasts a robust three-year average operating margin of 17.5%. That's much higher than that of other big media plays like CBS (12.7%) and News Corp. (13.4%), as well as NBCUniversal minority investor General Electric (NYS: GE) (9.4%).
CAPS member TheMiracleDJR expands on the Disney outperform argument:
Pixar, Marvel, ESPN, great connection to Apple -- I'm way too stupid to value multbillion-dollar companies, but assuming the valuation is fair enough now, one has to figure that the explosion of distribution possibilities, and the massive consumption of content, works in their favor. I used to be more bearish on big media, but now my thoughts are, as the Internet becomes a normal part of all of our lives, that we actually prefer fewer, larger sources to get our media. It gives more of a common bond and connection to each other. For better or worse, reports of the death of big media were greatly exaggerated.
What do you think about Disney, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to trackDisney?Add it to your watchlist.
At the time thisarticle was published 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 Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.