From Yahoo Finance: 2025-04-27 09:43:00

Over the very long term, the S&P 500 has generated an annualized total return of about 10%, showcasing the power of compounding. Investors aiming to outperform the benchmark face challenges in picking winning stocks with favorable characteristics and the right mindset.

In the past five years, investing in Walt Disney (NYSE: DIS) resulted in a 12.5% loss. Despite this, a prediction suggests Disney will outperform the market in the next five years. The company’s Experiences segment, including theme parks and cruise ships, is crucial financially.

Disney announced a plan to double capital expenditures to $60 billion over the next decade to enhance parks and cruise ships, reflecting confidence in global demand. The Experiences segment has shown impressive financial growth, with operating income rising at a 14% compound annual rate.

Disney’s poor stock performance has been tied to losses in its streaming segment. However, the direct-to-consumer operations, including Disney+ and Hulu, have recently posted positive operating income, signaling a potential turnaround for the company.

While Netflix dominates streaming, Disney aims to secure the second-place spot with its strong intellectual property and unique assets like ESPN. Despite recent stock volatility, Disney presents an opportunity for investors with low expectations and high upside potential.

The Motley Fool Stock Advisor team has identified 10 top stocks to buy now, excluding Walt Disney. Historical returns from previous recommendations highlight the potential for substantial gains. Stock Advisor’s total average return significantly outperforms the S&P 500.

Neil Patel and his clients have positions in Walt Disney. The Motley Fool also has positions in and recommends Netflix and Walt Disney, providing insights and analysis for investors seeking opportunities in the market.

Read more: Disney Will Beat the Market. Here’s Why