I ALWAYS Buy This Stock At These Levels!

Hey, welcome back subscribers to my world of stocks. Today, we are going to talk about a stock that I pretty much always buy at its current level, right under 100 bucks a share. And that is, of course, Disney, ticker symbol DIS. A stock that's been heavily beaten down, heavily criticized, and heavily shorted by the bears. But, although I agree with many of the criticisms, think some are definitely fair, I think it remains a very solid pick up at this specific level of what I consider to be support. And I'm going to explain exactly why I feel that way right now. So, pulling up the stock chart here, well, we can see that under 100 bucks a share, that's a level that it, first off, it rarely ever trades at, but when it does, really two things always happen. Now, first off, it almost never goes much lower than this. I mean, this is a level that throughout recent history, you're almost guaranteed to be sitting at the very floor here with tons of support. And number two is that it almost always bounces back up by around percent or more. Now, that's not to say that it'll stay up there. In fact, I think anyone that's been like swing trading all of this volatility has probably made a lot of profit on it because of just how how rocky it's been, how shaky it's been. But, regardless, I choose to stay invested for the longer term with a cost basis under $100 a share. And that is for a few different reasons. And number one, the valuation is just dirt cheap here for what is, in my opinion, still the best media business that money can buy out there in the market. As the stock has already crashed by more than half its entire value from the top, that's left their PE ratio at about the same level as the sector despite giant market dominance and at a whopping 45% lower level than their own five-year average. In other words, the market generally trades this stock for much higher levels than where it is today, and it's it's really shown to be more than willing to do that, to trade it at much higher levels. So, we know it's a level that it can easily get to. In fact, the that 5-year average would be close to double the valuation that it's at today, and I fully believe that it deserves to be trading up there, and I think it'll reach those levels again in the future. So, how did we get to these basement level prices in the first place? Well, the biggest drag on Disney's business has been really by far their ties to legacy cable with their TV network properties like ABC, ESPN, where even though cable is widely considered a dying medium, those networks still generated around 10% of the company's total revenue and an even larger 17% of their operating income during all of last year. And therefore, Wall Street continues to punish the stock because of these secular declines in cable TV that force the rest of Disney's other growing segments to work twice as hard just to help offset those declines. On top of that, Disney operates a very capital-intensive business where it costs really billions of dollars to maintain all these, you know, giant physical theme parks and build these brand new, you know, monstrous cruise ships and constantly produce high-end box office content with they generally spend the most on than anyone else. And because of their heavy reliance on consumer spending, Walt Disney is often thought of as a bit of a cyclical stock as well, which correlates with some of that volatility that I showed you earlier in the stock chart. Where in times of macro uncertainty or inflation or other economic headwinds, investors panic that families will cut back on spending like taking an expensive, you know, theme park or cruise ship vacations. And so, when you combine all of these headwinds, it can be understandable why such a dominant leader is crashing so hard in price. However, this would be very short-sided in my opinion to ignore all of the underlying potential that is still there. Like for example, what what view as the biggest growth engine right now for the future of entertainment is easily streaming. Where for the longest time the market valued Netflix even higher than Disney as the pure play almost kind of gold standard of the industry. And to be fair, I still see quite a bit of potential in Netflix long-term too. But you have to keep in mind that Netflix shares are currently down around half of their value this past year, too. And it's mostly because their growth has been slowing down. But not only is Disney much larger and more diversified, but their streaming growth has actually increased during the same time, too. Last quarter for example, their subscription streaming revenue grew by 13% year-over-year, which was even higher than the 11% growth that they saw the quarter before that. And even better, their subscription fees shot up by an even larger 16% too. Plus just as important, if not more important, their streaming business is now finally making substantial profit with their streaming operating income nearly doubling year-over-year, climbing up to more than half a billion. Now they do report earnings again soon this coming week, but if they are able to maintain some of that momentum, I don't see any reason why the stock shouldn't climb higher, too. Especially at a time when the market has been punishing the biggest streamer in Netflix for slowing down while Disney's is actually getting faster, leaner, and significantly more profitable. Yet it feels like the market is completely ignoring all of that. Now reason number three, the strong moat from brands, contents, and even theme parks. Where Disney still remains among the biggest box office leaders usually topping the charts in most years. In fact, over the past two years out of the seven movies that cleared $1 billion in global ticket sales, but Disney actually produced six of them. And the only one that wasn't a Disney movie was a Chinese movie that outside of that country most people probably never even heard of. I And I didn't know about it myself. In other words, Disney pretty much had every billion-dollar movie of the past 2 years, and that momentum is largely carrying over into this year, too, with Toy Story 5, for example, already being the country's highest-grossing movie of 2026. And all these blockbuster hits really, um, they later end up feeding the streaming platform too. Cuz if you didn't go out to see them in the, uh, movie theaters, well, you might just end up streaming it at home, and that's really where I think Disney's flywheel, uh, really comes into action here and and shows all the promise, where these giant hits later feed directly into not just their streaming services like Disney Plus and Hulu, but also into their own consumer products and even their theme parks and resorts and cruise lines for many years to come. And speaking of which, despite all of these, uh, macro concerns that we're currently going through, well, Disney is still seeing strong demand for their experiences segment that houses parks and cruises, which saw revenues rise by 7% last quarter with strong profit growth too. Which I fully expect to see continued momentum into these next couple quarters, too, especially throughout the summer months that we're currently in. And speaking of which, lastly, I expect a few more growth catalysts on the, uh, more kind of future horizon, as well, to help wake up Wall Street from this pessimistic slumber. Uh, first, Disney has some major releases coming up, including the highly anticipated Avengers: Doomsday hitting theaters in December, which I fully expect to be the best performer of the entire year, thanks to all the returning fan-favorite actors and characters. Uh, secondly, we have the big D23 Fan Expo coming up next month, which will actually be the very first fan event under the new CEO, so I do expect some pretty big theme park announcements to be made there that'll kind of help grab headlines and maybe catch more people's attention. And then lastly, this is a bit more on the analytical side of things, but at these incredibly low levels, well, I'm not the only one who thinks that this stock is a steal under 100. In fact, Disney is currently pouring billions of dollars into new stock buybacks. And I just think when you combine all these growth catalysts, the stronger performing business, and the some of those big buybacks eventually improving the PE ratios even further, too, Wall Street will have to start paying attention to all of the underlying value to be had here. In fact, on average, analysts uh covering the stock currently rate it a strong buy and predict that the price will rise by more than 30% on average uh just over the next 12 months alone. And again, I I have much higher hopes than that over the longer term. Now, will the stock, you know, magically rebound tomorrow? Will it happen that quickly? Probably not. The legacy cable networks are still a drag on them, and I fully expect the overall market to remain choppy for some time to come, especially in the face of all the inflation, the high interest rates, even the really, you know, sad and unfortunate war and conflict, everything that's going on in the world that uh you know, countries have been dealing with. But and people, obviously. But um at less than 100 bucks a share, uh I just feel that the downside risk here is pretty limited for Disney stock, while the long-term upside is looking you know, m- much better, in my opinion. Uh so, I am happy to continue to add to my position at these levels. But uh hey, that's just me. That's just my own strategy, what I'm personally doing. So, always you got to do your own research, make your own decisions. But let me know down below if you're buying Disney stock at under 100, or if you think that even here it's still way too expensive. I'd love to hear your reasons why down below in the comments. Uh but hey, either way, I just hope you enjoyed this quick update, and I thank you so much for stopping by, and um I hope you're all doing well, and I'll catch you guys in the next one. All right, take care, my friends. Bye-bye.