5 Stocks To Buy According To Carson Yost’s Yost Capital Management

3. The Walt Disney Company (NYSE:DIS)

Yost Capital Management’s Stake Value: $10.19 million
Percentage of Yost Capital Management’s 13F Portfolio: 11.37%
Number of Hedge Fund Holders: 112

The Walt Disney Company (NYSE:DIS) is a multinational mass media and entertainment conglomerate.

The company is expected to grow earnings at 37.5% over the next year, well ahead of the market’s expected 14.5%. In addition, the increasing influence of Disney+ should improve the company’s margins and ROE.

Overall, 112 funds were bullish on the company by the end of the June quarter, compared to 134 in the previous quarter. Carson Yost’s hedge fund holds 57,976 shares of the company. These shares are valued at $10.19 million at the end of Q2, and account for 11.37% of his fund’s portfolio.

In its Q2 2021 investor letter, RiverPark Funds mentioned The Walt Disney Company (NYSE:DIS) and discussed its stance on the firm. Here is what the fund said:

“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.

DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar, and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films, and 15 Disney and Pixar series.

Now that the disruption in its theme park, cruise, and theatrical businesses appears to be coming to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution. We also note that DIS has an extremely strong balance sheet and a growing pool of free cash flow to be used both to return to shareholders and to invest in future opportunities.”