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Disney Stock (NYSE:DIS): The Ultimate Back Door Into the Metaverse

2 years 8 months ago
Disney ( NYSE:DIS ) stock has been gaining a bit of ground lately following its stellar quarterly earnings report. It wasn't just the better-than-expected numbers but recent moves, including taking a $1.5 billion stake in Fortnite-maker Epic Games, that have me viewing Disney as a potential back door into the realm of the Metaverse. As Disney's top boss and CEO, Bob Iger, looks to bring the firm back to the top again, it's hard not to be a raging bull on the stock. Combined with more activism from activist investor Nelson Peltz (he's still pursuing board seats), looking to pressure for positive change, I couldn't be more bullish on the stock as it looks to pivot. With the stake in Epic Games, the recent sports streaming partnership with rival streamers, and news of Taylor Swift's Eras tour coming to the Disney+ streaming platform, there hasn't been this much to be excited about with regards to Disney in quite a while. From Eras to Sports Streaming, Disney May Have Its Eyes on the Metaverse In many ways, Taylor Swift's Eras could be the biggest non-Disney production to land on the platform since the firm brought Broadway hit sensation Hamilton just a few years ago. Though Eras could give consumers another reason to resume their Disney+ subscriptions, I view the biggest takeaway from the latest quarter (and commentary) as Disney's ambition when it comes to the virtual realm. Further, the streaming of concert tours represents a stark contrast to the content offered by other video streamers. Though concerts, plays, and recorded live experiences are fun to view through your television, I believe that they are best enjoyed in the realm of virtual reality. Disney's openness to exploring the realm of virtual reality and spatial computing is nothing new. Remember when Bob Iger was on stage during the reveal of the Apple ( NASDAQ:AAPL ) Vision Pro? Iger saw the potential in Apple's latest product, and his firm's recent bets look like they'd translate into the realm of immersive worlds very nicely. Disney+ has been hot on Vision Pro's tracks since day one, even as some of its peers, most notably Netflix ( NASDAQ:NFLX ) opted not to develop a native visionOS app in these early stages for Apple's newest product. Personally, I think Netflix has a lot to lose if it doesn't end up creating a slew of content for the new spatial medium, as Disney has. Of course, Netflix has deep enough pockets to play catch up at a later date, perhaps when headsets become more commonplace in the household. For now, though, Disney has its sights set on the future. And for that reason, I prefer Disney over the likes of Netflix. In many ways, Disney seems to be on the right track, bringing must-see "experiences" like Eras to its platform. Imagine experiencing the content on a 100-foot screen on your Vision Pro headset. Such an experience will make like you're almost a part of the action. Disney's Comeback Could Be Fueled by Spatial Computing, Vision Pro In the future, I'd look for Disney to invest more in spatial cameras for various productions — like those on the iPhone 15 Pro line — that can deliver "spatial" experiences that take the immersive factor to the next level. In its current state, the Vision Pro seems like a risky innovation to shrug off through the eyes of a prospective content creator. However, in a few years, it could become a must-have device as more content from Disney and others lands gradually. Over time, it's certainly not hard to envision a flood of high-quality "spatial" content storming over to the Vision Pro, perhaps thanks in part to forward-thinking content creators like Disney. Apart from concerts, video games, and other experiences, Disney's sports streaming push may be just the first step to achieving the holy grail of virtual court-side seats via spatial computers and VR headsets. Indeed, ESPN has been a drag on Disney's business for quite some time. But in the realm of spatial computing and streaming, the ESPN acquisition may finally prove its worth. Even if spatial computing takes a couple more years to take off (the form factor remains a tad too bulky), I have to say I'm impressed with where Disney is headed. It looks to be strolling right into the Metaverse. And if virtual-reality headsets end up a success, I'd argue that Disney could have what it takes to fight back at Netflix at long last. Is DIS Stock a Buy, According to Analysts? On TipRanks, DIS stock comes in as a Moderate Buy. Out of 21 analyst ratings, there are 16 Buys, four Holds, and one Sell recommendation. The average DIS stock price target is $115.50, implying upside potential of 2.7%. Analyst price targets range from a low of $82.00 per share to a high of $130.00 per share. The Bottom Line on DIS Stock In many ways, Disney seems to be the ultimate metaverse content play, as it looks to become one of the bigger developers for so-called "killer" apps on the next generation of spatial computing products. From sports streaming to metaverse-like video games (think Epic's Fortnite) and recorded concert experiences, Disney seems to be rolling the dice on the Metaverse. And it certainly could win in a big way as the field evolves. Indeed, Disney and Apple seem to be forming a symbiotic relationship as both look to unlock the full power of the immersive virtual worlds of tomorrow. Disclosure 

FIVE, BOOT, TPX: Which Strong-Buy-Rated Retail Stock Is Best?

2 years 8 months ago
Consumers seem to be in a weird spot right now, with high-end luxury goods selling well, while some folks turn their back on McDonald's ( NYSE:MCD ) following their price hikes. Indeed, the consumer could continue to be mixed going into the midpoint of this year as inflation and layoffs begin to work their way into sentiment. Despite this, Wall Street still seems quite upbeat on a handful of retail stocks (such as FIVE, BOOT, and TPX), which we'll cover in this piece with some help from TipRanks' Comparison Tool. Five Below ( NASDAQ:FIVE) Five Below isn't just another discount retailer that's capable of offering a top-notch value proposition. It's a discount retailer that's incredibly popular with the younger generations. Though inflation has essentially rendered the company's name obsolete (perhaps the firm should change its name to Five Beyond, like the section within certain stores that have goods priced at $5.00 and up), the retailer continues to offer great value on a wide range of intriguing products. You simply cannot find many of these products at most other discount retailers. For this reason, and because of the fair price tag, I remain incredibly bullish. Undoubtedly, raising prices and bringing new, pricier goods into stores has not caused consumers to look elsewhere. If anything, the wider selection of goods has drawn in more crowds. Though I believe FiveBelow is one of the best high-growth retailers to own in a mixed economy, not all analysts are upbeat. Oppenheimer's Brian Nagel recently downgraded the stock to Hold from Buy due to growth concerns and the stock's high valuation for a discount retailer. Though Mr. Nagel's concerns are warranted, I'm still inclined to stick with the rest of the Wall Street crowd, most of whom remain bullish. Sure, the price tag ( 38.4 times price-to-earnings) may be rich, but you've got to pay a premium for the truly standout industry players. Five Below stands out as one, in my opinion. There just aren't enough locations across the nation. As the firm grows its footprint, I think the firm can keep growing at an impressive pace, as it offers fun offerings (primarily toys) at affordable prices. Don't underestimate Five Below, as it's not just another dollar store. What Is the Price Target for FIVE Stock? Five Below stock is a Strong Buy, according to analysts, with 15 Buys and four Holds assigned in the past three months. The  average FIVE stock price target of $220.53 implies 16.3% upside potential. Boot Barn ( NYSE:BOOT) Boot Barn is a niche retailer that sells (you guessed it) cowboy boots, among other pieces of intriguing western wear, ranging from cowboy hats to western-style shirts to jeans and workwear. Unless there's a rodeo coming up, you're probably not going to rush over to the local Boot Barn to get a pair of cowboy boots and a hat. Still, the styles are timeless, and the company has a pretty wide moat around its corner of apparel retail. With a modest valuation (16.3 times trailing price-to-earnings), I'm inclined to be bullish, as many analysts are these days. The stock has seen decent gains over the past year, rising by around 11%. From its 2021 highs, though, Boot Barn shares remain down just north of 30%. The recent third-quarter top-line miss (sales were up just 1.1% year-over-year) and lowered guidance caused some to re-evaluate their Buy ratings. However, most analysts are confident in Boot Barn's future as the firm looks to pull up its bootstraps. The company's long-term potential is worth getting behind, so says B. Riley Securities, which highlighted the company's dominance in the corner of western and workwear. With a wide moat and good footing ahead of a consumer recovery, it's tough to look past Boot Barn and the many bulls in the Wall Street crowd. What Is the Price Target on BOOT Stock? Boot Barn stock is a Strong Buy, according to analysts, with 11 Buys and three Holds assigned in the past three months. Nonetheless, the  average BOOT stock price target of $90.69 implies just 0.1% upside potential. Tempur Sealy ( NYSE:TPX) Tempur and Sealy are two of the biggest brands in the world of mattresses and bedding. The $8.7 billion mattress and bedding company recently broke through to new all-time highs, just north of $50 per share. Higher highs could be in the forecast as the firm looks to benefit from a healing consumer while showcasing new innovations across its bedding lineup. With smart beds, intriguing temperature-regulating foams, and other sleep-easy innovations to win the business of sleepers, it's hard not to be bullish on the stock right here. Apart from innovative concepts, the firm has been doing a great job of staying ahead of capitalizing on the direct-to-consumer (DTC) boom with mattress-in-a-box products like Cocoon by Sealy. As far as boxed mattresses go, Cocoon certainly stands out as one of the more fully-loaded offerings out there. Although mattresses are an expensive discretionary purchase, I'm more inclined to view them as an investment in one's health and sleep hygiene. In an increasingly health-conscious world, one has to think that Tempur Sealy is in a spot to rise up on the back of a growing industry, with ExplodingTopics forecasting a 5.9% compound annual growth rate for the global mattress market from 2024 to 2030. What Is the Price Target on TPX Stock? Tempur Sealy stock is a Strong Buy, according to analysts, with five Buys and one Hold assigned in the past three months. The  average TPX stock price target of $58.08 implies 14.8% upside potential. The Takeaway The consumer may be doing okay, but that ultimately depends on who you ask. Moving into year's end, I'd look for the following retail plays to make up for lost time as market strength keeps working its way into consumer sentiment. Of the trio presented in this piece, analysts expect the most upside (16.3%) from Five Below. Disclosure 

Soybeans Close Off Lows, Still Double Digits Lower on Thursday

2 years 8 months ago
Front month soybean futures weakened another 8 ¼ to 14 cents on Thursday. The Nov contract remains at a 21 1/5 cent discount to the spot March contract. Soymeal futures finished the Thursday trading with $3.10 to $3.80/ton losses. Soy oil futures fell by 35 to 39 points on the...

Double Digit Losses for Wheat Futures

2 years 8 months ago
The U.S. wheat futures market continued lower through Thursday, ending the day down by double digits in all but the spring wheat markets. MGE HRS prices were 4 ½ to 6 cents weaker at the bell. Front month SRW futures closed 14 ¼ to 18 ½ cents lower with March...

Lean Hogs Gapped Higher and Rallied post Export Sales

2 years 8 months ago
Follow through strength on Thursday left front month hog futures another 35 to 92 cents stronger on the day. April leapt 50c at the open seeing the FAS data. Futures faded 60-70 cents from their highs for the close. USDA’s National Average Base Hog price weakened 87 cents to $67.34...

Cattle Rallied Off Initial Pullback for Thursday Gains

2 years 8 months ago
Cattle started the Thursday session weaker, but most contracts rallied to end the day in the black. Feeders were mixed with a 5c loss in May and a 57c loss for August, to the 87c gain for March. The fat cattle ended the day within a dime of the high,...

Old Crop Cotton Surge Continued through Thursday

2 years 8 months ago
Cotton prices continued their march upward with another 115 point gain for the March contract on Thursday. Even still, March futures were 60 points off their session highs for the close. New crop contracts also finished in the black, though by just 19 to 25 points. Dec is now at...

Corn Closed Near the Lows on Thursday Drop

2 years 8 months ago
The corn market continued to set new lows on Thursday, and with 6 ½ to 7 ½ cent losses ended the session within ½ a cent of said lows. Dec futures remain 39 cents above the spot March contract. The new crop soy/corn ratio was 2.498 at the settle on...

Stocks Settle Higher on Dovish U.S. Retail Sales Report

2 years 8 months ago
What you need to know… The S&P 500 Index ($SPX ) (SPY ) on Thursday closed up +0.58%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up +0.91%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed up +0.21%. Stocks on Thursday closed moderately higher. Stocks found...
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