Historically, December has been the best month to look for stocks to buy. On average, share prices have increased by more in December than in any other month.
With that in mind, I’ve been looking for some of the best stocks to buy in December. There are a few on my list, but one in particular stands out.
The stock is The Walt Disney Company (NYSE:DIS). The Disney share price has rallied a little recently, but it’s still down around 37% since the start of the year.
At these prices, I think that the stock is a bargain. That’s why I’m looking at buying shares for my portfolio in December.
Disney+
The company has been struggling on a couple of different fronts lately. The most significant of these, in my view, is its Disney+ service.
Disney divides its business into its Parks operations and its Media operations. The Media segment makes up around 64% of total revenues.
Disney+ accounts for around 39% of the revenues brought in by the Media segment. And this part of the business has been concerning investors lately.
According to the company’s most recent report, losses at Disney+ are increasing. While revenues increased by 8%, the segment’s losses increased from $630m to $1.4bn.
With interest rates rising, now isn’t a good time to be losing money. And I think this is what has been worrying investors and causing the Disney share price to fall.
I think, though that the fear is overdone. And I see this as a rare chance to buy Disney shares at an attractive price.
A brighter future
In my view, it’s not difficult to see why the share price has been falling. The difficulties with Disney+ have been weighing on profits.
I think, however, that there is room for optimism. Two recent things cause me to think that better times might be ahead for Disney shareholders.
The first is that the company has had a change in CEO. Bob Iger (who was previously in charge for 15 years) has returned to replace Bob Chapek.
I view this positively. I’m expecting the return of Iger to restore some of the stability to the business that had been lost as Chapek decided to shift the company’s focus to Disney+.
Furthermore, Chapek suggested recently that the peak of the losses might be in the past for Disney+. The outgoing CEO stated that he expected the operations to be profitable by 2024.
The best stock to buy in December?
There are a lot of reasons to like Disney shares. The company has a content library that I think is unmatched by any of its competitors.
I see the current difficulties as a temporary headwind to the company’s share price. If these subside in line with the management’s forecast, I think the shares look like a bargain.
That’s why I’m getting ready to buy Disney shares for my portfolio in December. It’s at the top of my list of stocks to buy.
