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Is It Too Late to Buy Discovery (DISCA) Stock?

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Alex Smith
·3 min read
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Del Principe O’Brien Financial Advisors recently released its March 2021 investor letter – a copy of which is available for download here. You should check out Del Principe O’Brien Financial Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Discovery Inc. (NASDAQ:DISCA) is one of them. Discovery Inc. (NASDAQ:DISCA) is a mass media company. In the last three months, Discovery Inc. (NASDAQ:DISCA) stock gained 22.2% and on April 7th it had a closing price of $43.39. Here is what the fund said:

"In January, Discovery Communications, Inc., launched a new subscription streaming service in the U.S. called discovery+. The service, which functions like Netflix or Disney Plus, offers “non-fiction, real-life” programming from Discovery’s existing portfolio of networks including the Discovery Channel, HGTV, Food Network, TLC, Travel Channel, Animal Planet, OWN: Oprah Winfrey Network, and the forthcoming Magnolia Network, which features content from the brand of Chip and Joanna Gaines of Fixer Upper fame.

“There is nothing like [discovery+] in the market today,” said David Zaslav, President and CEO of Discovery, Inc. “We launch significant advantages, including the world’s greatest collection of non-fiction brands and content, built over more than 30 years across popular and enduring verticals, as well as powerful partnerships with leading distributors and platforms.” Among these distributors and platforms are Amazon Fire TV, iPhone, Apple TV, Chromecast and other Android phones and tablets, Microsoft Xbox One, the Roku platform, and many Samsung Smart TVs, as well as a partnership with Verizon to offer discovery+ to new and existing customers of the communications provider.

This new streaming service only adds to the value of Discovery, Inc., which already has powerful brands, global reach (see graphic below) and unique, unreplicable content. All of these factors speak to the company’s intrinsic value and indicate continued growth.

As of March, we have realized gains of approximately 196% in Discovery, which makes it our secondlargest holding. For clients that are Accredited Investors, we purchased LEAPS (Long-Term Equity Anticipation Securities) in Discovery, Inc. (DISCA, 20230120, 32.5, CALL, Option, SMART, USD) at $4.50. That same call option is currently trading at $35.50, which gives our clients a return of 689% annualized. (Please remember that past performance is not indicative of future results.)"

Last month, we published an article revealing that Smead Capital Management is also bullish on Discovery Inc. (NASDAQ:DISCA) stock.

Our calculations showed that Discovery Inc. (NASDAQ:DISCA) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.