3 Reasons to Buy Disney

Fundamental quality, impressive financial performance, and attractive valuation levels are three key reasons to invest in Disney right now.

Disney (NYSE:DIS) stock has delivered lackluster returns lately. Shares of the entertainment powerhouse are down by 20% from their highs of the last year, mostly because of concerns about the negative impact the online streaming revolution could have on the company's business. Nevertheless, when considering variables such as business quality, financial performance, and valuation, there are strong reasons to believe that the short-term dip in Disney could present a buying opportunity for long-term investors.

A world-class businessDisney is a unique company in the entertainment industry, as it benefits from expectational fundamental strengths. The company owns enormously valuable brands such as Disney itself, Pixar, ESPN, Marvel, and ABC, among others. In addition, it has the intellectual rights to many of the most valuable fictional characters and franchises in the world, ranging from Mickey Mouse to Star Wars. In case this weren't enough, unparalleled human talent and abundant financial resources to invest in areas such as movie productions and advertising provide additional layers of strength for the business.


Source: The Motley Fool