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The Zacks Analyst Blog Highlights: Walt Disney, Comcast, PCM and Churchill Downs

The Zacks Analyst Blog Highlights: Walt Disney, Comcast, PCM and Churchill Downs


For Immediate Release

Chicago, IL – December 12, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Walt Disney Company DIS, Comcast CMCSA, PCM, Inc. PCMI and Churchill Downs, Inc. CHDN.

Here are highlights from Tuesday’s Analyst Blog:

Disney’s Box Office Results Boost Studio Entertainment Unit

The Walt Disney Company has hit a milestone at the global box office yet again by touching $7 billion in year-to-date ticket sales.

Disney Animation’s flick Ralph Breaks the Internet reached the zenith of the top 10 weekend domestic box office estimates, pulling the company through the $7 billion mark.

This comes a couple of years after the company had broken the $6.9 billion record set by Comcast’s Universal Studios, with a string of top-grossing films like Rogue One, Finding Dory, Captain America and Zootopia.

Marvel’s Avengers: Infinity War, Black Panther and Ant-Man and the Wasp, Pixar’s Incredibles 2 and Lucasfilm’s Solo: A Star Wars Story were among the other revenue pulling films for Disney this year.

Moreover, with Mary Poppins Returns releasing on Dec 19, Disney might outpace the domestic gross of $3 billion and hit another industry record.

Focus on Studio Entertainment

Disney’s Studio Entertainment segment, which produces the animated and live-action motion pictures, direct-to-video programming, musical recordings and live stage plays, is a significant revenue generator.

A part of Disney’s tradition of producing top-grossing animated and superhero films can be attributed to the strategic acquisitions it makes from time to time. It has spent about $15.4 billion in acquiring Pixar, Marvel Comics and Lucasfilm since 2006. These assets have delivered most of the top-grossing films this year.

These acquisitions have proven to be profitable for the company, which has generated $10 billion in revenues only from its Studio Entertainment segment at the end of fiscal 2018, increasing 19% year over year.

Moreover, in the final quarter of fiscal 2018, the Studio Entertainment segment’s operating income surged 173.4% to $596 million.

Rise in operating income was driven by strong growth in theatrical, TV/SVOD and home entertainment distribution and lower film cost impairments.

The interesting lineup of movies next year, including Captain Marvel, Dumbo, Aladdin, The Lion King, Toy Story 4 and the next Avengers film, is expected to deliver yet another year of massive hits and impressive segmental performance.

Zacks Rank & Stocks to Consider

Disney currently has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Consumer Discretionary sector are PCM, Inc. and Churchill Downs, Inc., each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for PCMI and Churchill Downs is projected to be 20% each.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
PCM, Inc. (PCMI) : Free Stock Analysis Report
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