Josh Brown Explains Why Disney is a Top Stock Pick

Disney's Inclusion in "Best Stocks" List

• 💡 Josh Brown, CEO of Ritholtz Wealth Management, expresses surprise at Disney's inclusion on his "Best Stocks in the Market" list.
• 🎯 This list is used to verify what's working in the market, rather than relying on general narratives.

Outperformance of Entertainment Stocks

• 📈 Seven entertainment industry stocks, including Disney, Liberty Media, Live Nation, Netflix, Spotify, Roblox, and Take Two, are on the list.
• 💰 The median year-to-date return for these media stocks is 17.5%, significantly outperforming the S&P's median return of 1%.
• ⚠️ This strong performance occurs despite widespread commentary about consumer stress.
• 📌 90% of S&P entertainment names are within 10% of their 52-week highs, indicating broad strength in the sector.

Disney's Growth and Stock Setup

• 🚀 Wall Street is increasingly crediting Disney for its 125 million global Disney Plus subscribers and 12% market share in streaming.
• 💰 Disney generated approximately three billion in streaming revenue last quarter.
• 🎬 The company is experiencing a decent, though not amazing, box office summer.
• 📉 A break below $100 would signal a loss of momentum, serving as an easy stop-loss point.
• 📈 A breakout above $120 would be a significant move, with potentially few sellers remaining.
• 💡 The stock presents a favorable setup for long-term investors.