5 Best DOW Stocks To Buy According To Hedge Funds

4. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 111

The Walt Disney Company (NYSE:DIS) is a prominent name in the movies and entertainment industry and is also a top stock pick among elite hedge funds, which places it fourth among the best DOW stocks to buy according to hedge funds. According to Insider Monkey’s database, 111 hedge funds held long positions in The Walt Disney Company (NYSE:DIS) at the end of the fourth quarter of 2021, up from 101 positions in the previous quarter. The total stake of these hedge funds came in at $6.94 billion.

On May 11, The Walt Disney Company (NYSE:DIS) reported earnings for the fiscal second quarter of 2022. According to the company’s earnings report, The Walt Disney Company (NYSE:DIS) registered a quarterly EPS of $1.08 and generated revenues of $19.25 billion, up 23.29% year over year from $15.61 billion.

This May, JP Morgan analyst Phil Cusick reiterated his $175 price target and Overweight rating on The Walt Disney Company (NYSE:DIS), following the company’s strong fiscal second-quarter performance. The analyst reasoned his bullish outlook by highlighting that the company reported over 7.8 million Disney+ subscriber additions for the quarter, 2.8 million more than the 5 million consensus estimate. Cusick believes fiscal 2022 Disney+ net additions of 43 million subscribers and also sees The Walt Disney Company (NYSE:DIS) generating pre-pandemic margins from its theme parks business in 2022 which will drive momentum for its shares.

Matrix Capital Management is the most bullish hedge fund on The Walt Disney Company (NYSE:DIS) as of March 31, 2022. The fund’s stakes were valued at $868.22 million.

ClearBridge Investments mentioned The Walt Disney Company (NYSE:DIS) in its “Sustainability Leaders Strategy” fourth-quarter 2021 investor letter:

“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. Disney announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. Disney has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe Disney is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”