Must-know: Can Disney extend its impressive returns?

Market Realist

Must-know: Will Disney's incredible run continue? (Part 1 of 7)

Investors have faired well

Following Disney’s (DIS) notable 44% return in the year-to-date period, investors are likely questioning whether the performance can extend. While media stocks as a whole have been solid performers, Disney has several unique aspects that present a challenging analysis and make it difficult to compare directly with peers. Disney is a member of the PowerShares Dynamic Media Portfolio ETF (PBS), which seeks to provide exposure to an index of media stocks.

Disney’s components

The Walt Disney Company comprises several components and discloses its financial results accordingly. The Media Networks segment comprises the company’s broadcast and cable television networks, such as ABC, ESPN, the Disney Channel, ABC Family, A&E, and SOAPnet. The Parks & Resorts segment of course operates the company’s renowned Disney theme parks, as well as its cruise lines. The Studio Entertainment segment produces motion pictures. The Consumer Products segment designs and publishes products based on the Disney brand and logos. Finally, the Interactive segment creates and sells video games.

The many segments Disney operates can create a challenge for analysts attempting to forecast financials and produce a valuation of the enterprise. In this series, we’ll explore the various segments in order to more completely understand the firm and its future growth prospects.

Continue to Part 2

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