Should You Anticipate Higher Growth Potential in The Walt Disney Company (DIS) Compared to Its Peers?

ClearBridge Investments, an investment management company, released its “ClearBridge Value Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The investment landscape appears thriving on the surface but chaotic underneath due to geopolitical tensions, deglobalization, rising debt, and supply chain disruptions. Although nominal growth is accelerating, it also brings greater volatility and unpredictability. The ClearBridge Value Strategy outperformed its Russell 1000 Value Index benchmark in the second quarter in a subdued period for value stocks. Overall stock selection contributed to the strategy’s performance in the quarter, while overall sector allocation detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Value Strategy highlighted stocks such as The Walt Disney Company (NYSE:DIS). The Walt Disney Company (NYSE:DIS) is an entertainment company that operates through the Entertainment, Sports, and Experiences segments.  The one-month return of The Walt Disney Company (NYSE:DIS) was 1.69%, and its shares gained 24.86% of their value over the last 52 weeks. On July 9, 2025, The Walt Disney Company (NYSE:DIS) stock closed at $120.61 per share, with a market capitalization of $216.827 billion.

ClearBridge Dividend Strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its second quarter 2025 investor letter:

"In communication services, one of our leading contributors was recent addition The Walt Disney Company (NYSE:DIS). We initiated a position in the entertainment company during the first-quarter tariff volatility, as fundamentals were turning higher and earnings estimates began to rise as its streaming business continued to scale. Additionally, the shift in management’s strategy, from “market share growth at all costs” to an approach more focused on improving pricing, should also improve both profitability and margins, and we see meaningful upside compared to other streaming service providers."

The Walt Disney Company (NYSE:DIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held The Walt Disney Company (NYSE:DIS) at the end of the first quarter which was 108 in the previous quarter. While we acknowledge the potential of DIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Walt Disney Company (NYSE:DIS) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.