Let’s get into the 3 stocks to buy for November 2018! This is just part 1 where we’ll talk about Disney (DIS).
Man has this market been rough these last few weeks. But there are a few bright spots in this mess. Like for example one blue chip stock is actually up over 3% in the last month while the rest of the market is down. And that stock is Disney! Today we’re going to be talking all about the fat pitch that is Disney. And it’s all going down on this week’s episode of Real Vision’s The One Thing.
Now in a recent note, the extremely smart and ridiculously good looking Alex Barrow, who is the founder of Macro Ops and a Real Vision Think Tank contributor, did a fantastic job explaining why the market is completely misvaluing Disney.
See with problems like ESPN’s subscribership falling off a cliff and Disney’s slow move into streaming, investors have been real sour towards the company’s stock price. They just don’t trust Disney to successfully transition into the cord cutting era.
And that’s honestly crazy when you think about Disney’s invaluable library of content, their enormous brand moat, and most of all, their all-star CEO Bob Iger. Now Bobby Iger is hands down one of the best in the game.
But right now, even though Disney is coming out with their very own “DisneyFlix”, they aren’t even being valued like a streaming company. Netflix trades at a price to sales multiple of over 11 times. Disney only trades at 3 times. This is a huge mispricing that shows how much runway Disney’s stock price really has.
Like I said, the market doesn’t think Disney will win the streaming wars. But they’ve already got a great start. Because of their Fox acquisition, they gained control over Hulu which already has 20 million US subscribers. Netflix only has 57 million US subscribers, so it’s not a bad start.
And as always, stay Fallible out there investors!