Shares of The Walt Disney Company ( DIS ) reached a new
52-week high of $58.82 on Monday, Apr 8, as the company's ad sales,
domestic resort reservations and booking rates are witnessing
Shares of Disney have risen approximately 15.1% year to date.
Disney currently trades at a forward P/E of 17.12x, a 9% premium to
the peer group average of 15.70x.
Disney continues to invest in its core businesses to create
long-term growth opportunities. Disney entered into several content
distribution agreements with companies like Comcast
Corp ( CMCSA ),
Netflix Inc. ( NFLX ),
Charter Communications Inc . ( CHTR ) and Cox
Communications, which strengthen its multichannel subscription
model by adding more platforms to deliver its content. The company
remains focused to generate increased income from affiliate deals
and retransmission renewals.
Further, strong performance of its Media Networks division
continues to boost the top and bottom-line results. Going forward,
management remains confident of a strong performance by ESPN as it
remains the favorite destination of sports lovers and possesses the
right mix of exclusive sporting licenses with top sporting
Moreover, Disney has been actively managing its cash flow,
returning much of its free cash to shareholders via share
repurchases and dividends. It bought back 21 million shares for
approximately $1 billion. In Nov 2012, the company increased its
quarterly dividend by 25%, bringing the annualized payout to 75
cents per share.
We believe, with a strong slate of releases including Iron
Man 3 , Monsters Inc. 2 , The Lone
Ranger and Planes , the company remains well
positioned to drive revenue growth in the coming quarters.
Currently shares of Disney maintain a Zacks Ranks #3 (Hold).CHARTER COMM-A (CHTR): Free Stock Analysis
ReportCOMCAST CORP A (CMCSA): Free Stock Analysis
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