There's Still Some Enchantment Left at Disney (DIS) - Barron's
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Price: $98.89 --0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +7.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +7.5%
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Disney (NYSE: DIS) shares are flattish on the session amid positive commentary out of Barron's recently.
Along with the recent acquisition of LucasFilm, Disney's park, broadcasting (e.g. - sports-content leader ESPN), and intellectual property make Disney a formidable, venerable competitor for your portfolio space.
Barron's notes that at 16 times earnings, shares aren't cheap. However, growth prospects and market position give the name in enticing appeal. In addition, the net present value of future income streams ins lower than the average S&P 500 component.
Parks are Disney's most cyclical operations, notes Barron's, but film franchises like Iron Man and Star Wars have built-in fanbases that lead to low-risk, high profit ventures.
As for ESPN, Barron's noted that it remains head-and-shoulders above the competition, constantly passing fees along to subscribers. Its rich cash pile will continue to allow ESPN to bid for broadcasting rights on key events.
Spending has ebbed following several years of robust expenditures, with Disney now reaping some of the benefits on its acquisitions. More than bottom-line growth, analysts are also expecting a boost in free cash flow over the next two- to four-year time frame.
Some risks include a consumer less-willing to spend on content and vacations, as well as cable providers capping fees it charges for stations like ESPN.
But, one analyst makes a strong point in that, aside from earnings projections, profit ratios, and other metrics used to estimate return, Disney is a name that has created an "emotional attachment." He sees grandchildren's grandchildren being consumers of the company, which will continue generating gobs of wealth for the company and investors.
With a 1.2 percent yield, some investors might be pushing for a larger payout as cash flow improves.
Shares are down about 0.2 percent Thursday.
Along with the recent acquisition of LucasFilm, Disney's park, broadcasting (e.g. - sports-content leader ESPN), and intellectual property make Disney a formidable, venerable competitor for your portfolio space.
Barron's notes that at 16 times earnings, shares aren't cheap. However, growth prospects and market position give the name in enticing appeal. In addition, the net present value of future income streams ins lower than the average S&P 500 component.
Parks are Disney's most cyclical operations, notes Barron's, but film franchises like Iron Man and Star Wars have built-in fanbases that lead to low-risk, high profit ventures.
As for ESPN, Barron's noted that it remains head-and-shoulders above the competition, constantly passing fees along to subscribers. Its rich cash pile will continue to allow ESPN to bid for broadcasting rights on key events.
Spending has ebbed following several years of robust expenditures, with Disney now reaping some of the benefits on its acquisitions. More than bottom-line growth, analysts are also expecting a boost in free cash flow over the next two- to four-year time frame.
Some risks include a consumer less-willing to spend on content and vacations, as well as cable providers capping fees it charges for stations like ESPN.
But, one analyst makes a strong point in that, aside from earnings projections, profit ratios, and other metrics used to estimate return, Disney is a name that has created an "emotional attachment." He sees grandchildren's grandchildren being consumers of the company, which will continue generating gobs of wealth for the company and investors.
With a 1.2 percent yield, some investors might be pushing for a larger payout as cash flow improves.
Shares are down about 0.2 percent Thursday.
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