5 Cheap Travel Stocks to Buy Now

4. The Walt Disney Company (NYSE:DIS)

Upside Potential: 38.44%
Price target: $120.53
Number of Hedge Fund Holders: 95
The Walt Disney Company (NYSE:DIS) is a global media and entertainment conglomerate that is famous for its iconic brands, creative minds and innovative technologies. The Walt Disney Company (NYSE:DIS) had a mixed performance in 2023, as it faced both challenges and opportunities in its various businesses. The company reported revenue growth of 10% and 13% for the first and second quarters of 2023, respectively, compared to the same periods in 2022.

The Walt Disney Company (NYSE:DIS) has a consensus rating of Moderate Buy, derived from 12 buy ratings and 5 hold ratings. The average price target for the company is $120.53, with the highest analyst price target at $147 and the lowest forecast at $88. On average, the price target indicates a 38.44% increase from the current price of $87.06.

Based on Insider Monkey’s data, The Walt Disney Company (NYSE:DIS) saw a decrease in sentiment from hedge funds, with 95 funds holding a positive outlook on the company at the end of the first quarter of 2023, compared to 99 funds in the previous quarter. Notably, Trian Partners, led by Nelson Peltz, is a significant investor in the company, holding 5.92 million shares.

Here is what VGI Partners Global Investments Limited specifically said about The Walt Disney Company (NYSE:DIS) in its 2022 annual investor letter:

“The Walt Disney Company (NYSE:DIS) is a diversified media conglomerate operating media networks, theme parks, film and TV studios and direct-to-consumer streaming services. It is the global leader in theme parks with hotels and cruise lines aimed at families. Key assets within Disney are the instantly recognisable entertainment franchises that have multiple avenues of monetisation such as Mickey Mouse, Star Wars, ABC and Marvel’s Avengers.

Disney’s share price declined due to a number of factors in 2022, presenting us the chance to purchase a long-admired business and its unique collection of valuable intellectual property assets at what we consider to be a very attractive valuation. Summarily, the EPS of Disney has declined from US$7 in 2018 to ~US$2.60 in 2022 but we believe that the earnings power of the assets has not diminished to anywhere near this extent.…” (Click here to read the full text)