You Better Use Your Money To Visit Disney's Parks Rather Than Invest In Disney's Stock

The Walt Disney Co ($DIS) is a member of the Dow Jones Industrial Average ($DJI,$DIA) prestigious index for over 30 years (Joined on May 6, 1991).

For ages, the stock has delivered its shareholders amazing returns that have not only topped its direct benchmarks*, but even exceeded those delivered by the overall market.

Nonetheless, over the past two years the coronavirus has turned the world upside-down, making us all feel as if we're taking a ride on one of Disney Parks' famous roller-coasters.

Thing is, the coronavirus has hit everybody, Disney and its media/entertainment peer group alike. Therefore, attributing the stock's underperformance solely to COVID seems like a lame excuse.

Not only is the stock delivering way less impressive results over the past two years, but for the first time in ages, DIS is underperforming both its benchmarks as well as its main competitors.

In this article we claim that this underperformance is likely to continue for at least another year, and that investors should still keep their expectations from DIS down to (COVID) earth.

Just to make it clear: This isn't a bearish article, and the rating we assign to DIS is a HOLD. We have tremendous respect for the Disney brand, and we believe that at some point, though not in 2022, the company may regain its (post-COVID) mojo.

Nonetheless, we don't expect much from the stock over the next 12 months, and for that reason we've decided to spice things up a bit, potentially enhancing what we believe is going to be a mediocre return out of DIS in 2022.

All in all, we're holders of the stock, and we intend to keep holding the stock, at least till covered CALL options do us part.

SOURCE: seeking alpha