By Andrew Bary
This article is an excerpt from "Amazon and 9 More Stocks to Buy for 2026," published on Dec. 12, 2025. To see the full list, click here.
While Netflix and Paramount Skydance are prepared to pay a stiff price for Warner's movie, TV and streaming business, Disney shares languish despite controlling some of the industry's best assets.
Disney stock, at around $107, was hit after its September-quarter results due to a disappointing experiences segment, which is dominated by Disney World and other parks. The profit outlook, however, looks better, with Disney projecting double-digit earnings growth in the 2026 and 2027 fiscal years, helped by its cruise ship expansion.
The stock is valued at 16 times projected earnings in the fiscal year ending in September. That's too cheap given its "valuable intellectual property and durable demand," according to Wolfe Research analyst Peter Supino, who has a price target of $133.
What's more, Disney has similar total earnings as Netflix, but only half the market value. With Netflix potentially becoming more of a traditional media company if it buys Warner, why buy Netflix at double the valuation to Disney?
Don't overlook CEO Bob Iger, who is due to retire at the end of 2026 after his second tour as Disney's leader. He likely wants to go out on a high note -- and that's bullish for the stock.
Write to Andrew Bary at andrew.bary@barrons.com
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January 02, 2026 02:00 ET (07:00 GMT)
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