Did Jim Cramer Nail or Miss These 11 Stock Predictions?

9. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 108

In that older episode, a longtime investor asked Jim Cramer whether it still made sense to hold The Walt Disney Company (NYSE:DIS), given its weak stock performance at the time, despite the return of CEO Bob Iger. Cramer responded:

“We got to blow out a lot of Disney for the club when it was higher — thank you Nelson Peltz for doing that, although I think he doesn’t get enough credit for actually moving the stock higher. It’s now all the way back down where we are inclined — at $100 — to buy more. So we’re inclined to buy it. And you’re a club member, then you know this is a very good level. The stock has gotten too cheap.”

Cramer was reasonably accurate here as the stock dropped to $80 before bouncing back up. Now overall 9.00% up since his suggestion. The Walt Disney Company (NYSE:DIS) is balancing streaming strategy, content cost control, and park growth as it navigates the post-Iger-return transformation.

Talking about investors who sold the stock before it bounced back, Cramer said the following on May 15:

“Look, these things occur every day around here. Think about what happened to the stock of Disney in the last few months… A month ago, it was at $82…. People were buzzing about how the theme parks are too expensive. The sports entertainment’s too expensive. The movies are either too woke or not woke enough, depending on who you ask. You never heard anyone say, did it got the right amount? Now, one month later, Disney’s at $112 pretty much in a straight line.

The company reported a terrific quarter. Turns out people are willing to pay top dollar for the theme parks. The sports deals are making plenty of money. And I guess the movies, well, let’s say they hit the Goldilocks level, not too much, not too little. Same company, just written off by the pessimists, the ones who gave up on all that excellent expertise and intellectual property, think of the money that they didn’t make.”