Jenny Harrington's Latest Stock Buys: Disney and TripAdvisor

Jenny Harrington's Investment Strategy

• 💡 Jenny Harrington, CEO of Gilman Hill Asset Management, explains her recent stock purchases, emphasizing that her actions reflect her true market outlook.
• 🎯 She clarifies that her concerns about the market and economy do not mean she dislikes everything; instead, she looks for well-priced assets that are leveraged to the consumer and the economy.

Analysis of Disney Investment

• 💰 Harrington is buying Disney not for its growth story, but for its valuation mean reversion to historical multiples.
• 📈 Disney is trading at 17 times EPS, with projected earnings growth of 11-13% over the next three years, supported by strong US park foot traffic and summer bookings.
• 🔑 The consumer segment Disney leverages is the high-end consumer, distinct from discount shoppers.

Rationale for TripAdvisor Purchase

• ✈️ TripAdvisor is highlighted as a unique investment trading at 10 times earnings, with significant growth potential from its Victor business.
• 🚀 The overhang from Liberty Media has been resolved, paving the way for earnings growth and substantial free cash flow generation.
• 📊 With projected earnings growth of 11-22% and a low P/E ratio, TripAdvisor is seen as an undervalued opportunity.

Market Outlook and Contrasting Investments

• ⚠️ Harrington expresses caution about the broader market, noting that while consumer spending is holding up, inflation remains a concern.
• 🚫 She contrasts her buys with stocks like Target and Ford, which she is avoiding due to zero visibility on earnings because of tariffs and regulatory environments, despite their high dividend yields and low prices.
• 🔍 The current market is challenging due to the disconnect between long-term outcomes and near-term excitement, making valuation and margin of safety key considerations.