Do Walt Disney and iRobot stocks have anything in common? If we want to abstract it very much: yes, possibly. Both stocks follow at least two megatrends. That could turn these exciting shares into long-term opportunities.
But which stock should Foolish investors be betting on now? Walt Disney? iRobot? We want to get to the bottom of this question now. Whereby you get my point of view as to which stocks I find even more attractive now.
Walt Disney: Clear growth trend + turnaround
Walt Disney stock currently has two exciting options. On the one hand, there is a solid turnaround. Walt Disney’s shares are likely to improve in the short to medium term operationally and in the theme parks. However, that is possibly the smaller part of an investment thesis.
Walt Disney stands for more and, in the future, above all for growth. In the streaming segment, the management would like to have 350 million subscribers in the future. Whereby this is also a water level mark that should be reached as early as 2024. In the long term this could of course be even more. Still, that could possibly mean that the US media and leisure company will generate $ 43 billion more in revenue in the future.
The fundamental valuation is far from cheap. The current market capitalization is $ 305 billion. But if I add a multi-billion dollar amusement park segment, exciting franchises like Star Wars, the Simpsons or the other popular classics as well as the growth opportunities, I think: sooner or later, the share should be worth more.
iRobot: Die Heimroboter-Revolution
Another stock that could have a lot of potential is iRobot. In a way, the name says it all. Because consumers can order home robots through the company. Regardless of whether it is the lawn mower or the vacuum cleaner. These can be two formats for which iRobot produces, develops and sells solutions. The trend will probably continue to rise.
Will iRobot have a clear future that is shaped by growth? That is the big question mark. In any case, it is clear that sooner or later competition should be something that you as a Foolisher investor keep an eye on. After all, iRobot is not the only manufacturer and seller of such solutions.
But the rating is comparatively low. iRobot is currently valued at a market cap of $ 3.4 billion. Even the price / sales ratio is currently just around 2. That could be an inexpensive starting point with gigantic potential. At least if you believe in the home robot revolution as an investor.
My choice … right now
If I had to choose between one of these stocks now, my choice would be Walt Disney. The trend is just clearer to me and growth is more likely. The US leisure and media group also offers turnaround and growth. I really like that. However, should iRobot’s fundamental valuation get even cheaper, things could soon look different.
The post Walt Disney or iRobot? I would rather bet on this share now! appeared first on The Motley Fool Germany.
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Vincent owns shares in iRobot and Walt Disney. The Motley Fool owns shares of and recommends iRobot and Walt Disney.
Motley Fool Deutschland 2021
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