Buy This Stock In December: Walt Disney

Walt Disney's (NYSE:DIS) stock is down by more than 15% this year. There's no getting around the fact that COVID-19 hurt the company's results by shutting down its theme parks, delaying movie releases, and stopping live-action sports that hurt ESPN, its sports network. Out of caution, the board of directors suspended Disney's dividend.

More recently, investors have been dismayed by slowing growth at its streaming service, Disney+. In 2020, the number of paid subscribers skyrocketed to 94.9 million from the prior year's 30.4 million, undoubtedly helped by people stuck at home. In the recently completed fiscal year, which ended in October, there were 118.1 million subscribers, but this only increased by about 2 million from July. But with a ton of content coming out that will make its way to Disney+, this slowdown will likely prove temporary.

More importantly, Disney has become a global media empire. So even if the streaming service's growth lags for a while, other pieces of the business will pick up the slack. This includes television networks, theme parks, movie studios like Disney, Pixar, Twentieth Century, and Marvel, and retail stores. Even with its streaming service's slowing subscriber growth, fourth-quarter revenue rose by 26%.

With such great properties and content, I have no doubt about Disney's long-term prospects.

These three companies all seem worthy of an investment. Aside from establishing great franchises, each has taken steps to ensure a bright future. Johnson & Johnson is breaking itself into two, but remains a rock-solid business. Walmart, established as the low price leader, continues to invest in technology to keep up with the times. And Disney continues to expand, including buying Twentieth Century Studios and launching its streaming service a couple of years ago.

Attractive brands and astute moves to position their companies for the future would seem to add up to attractive long-term investment opportunities when you consider their stocks have trailed the market this year.

Disney stock closed Wednesday at $141.84, -$36.90 away from the daily 200-SMA at $177.90.