Back to top

The Zacks Analyst Blog Highlights: AT&T, Walt Disney, Viacom and Netflix

Read MoreHide Full Article

For Immediate Release

Chicago, IL – December 27, 2018 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AT&T (T - Free Report) , Walt Disney (DIS - Free Report) , Viacom (VIAB - Free Report) and Netflix (NFLX - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Can Stiff Competition Derail Disney’s Box Office Rule in 2019?

The preceding festive weekend saw what it had expected to see — packed theatres and record-hitting domestic box-office sales for the big-ticket releases.

Aquaman, a production of AT&T’s Warner Bros., raked in record sales of $67.4 million and still counting at the North American box office. Walt Disney’s Mary Poppins Returns was right behind with $23.5 million weekend collection at the domestic box office.

Meanwhile,Bumblebee grabbed the third position, fetching an estimated $21.6 million during the weekend for Viacom’s Paramount at the domestic box office.

Disney Dominates 2018

Even though Aquaman grossed about $483 million worldwide since its release on Dec 14, almost 10 times more than the estimated $51 million that Mary Poppins Returns made globally since its Dec 19 release, the year was ruled by Disney films.

Earlier this month, Disney Animation’s flick Ralph Breaks the Internet reached the zenith of the top 10 weekend domestic box-office estimates, enabling the company to achieve the worldwide $7-billion mark year to date as of Dec 10.

In January 2018, Disney’s Black Panther alone generated $700 million in domestic sales to become the third-highest blockbuster in the United States.

Per Box Office Mojo, with $3 billion year-to-date collection at the domestic box office, Disney’s Buena Vista studio currently captures the maximum share of the Studio market at 26.3% compared with Warner Bros.’ 15.6%.

All in all, 2018 is undoubtedly proving to be a great year for the domestic box office. Per Hollywood Reporter, the 2018 domestic box office is heading for a record haul and is projected to hit $12 billion. With another holiday weekend to go before the year ends, it remains to be seen how the box office ushers in 2019.

Strong Lineup for 2019

The interesting line-up of Disney movies next year including Captain Marvel, Dumbo, Aladdin, The Lion King, Toy Story 4 and the next Avengers film is expected to deliver yet another year of massive hits.  The Avengers: Infinity War had made a whopping $258 million on its opening weekend domestically. This in turn, augurs well for the success of its sequel in the series. The Lion King as a classic favorite is also a much-anticipated film lined up for the following year.

While the Disney package looks attractive, Warner Bros.’ The LEGO Movie 2, Detective Pikachu, Minecraft and the next of The Conjuring series appear quite promising for the company. Considering the smash hit The Nun, which logged around $54 million at the domestic box office on its opening weekend in September, the next film of The Conjuring series too seems to be a much-touted one.

Severe Competition Dictates Strict Measures

Even though the box office is dominated by Disney, the company faces stiff rivalry in other areas that it operates in. Disney is expected to launch its online streaming service in late 2019 to counter competition from established players in the market, namely Netflix and Amazon Prime.

The streaming service is said to feature content from Pixar, Marvel, Lucasfilm and National Geographic. Additionally, Disney is working on building its original content portfolio for its streaming service.

Disney’s planned acquisition of a majority of 21st Century Fox’s assets will significantly expand its content portfolio and is expected to boost the company’s competitive edge against Netflix and Amazon Prime.

Moreover, AT&T is expected to invest heavily in HBO that further intensifies competition in the content market. Further, a strong line-up of movies from the likes of Warner Bros. and Paramount is likely to make it difficult for Disney to repeat its 2018-like dominance.

Disney currently carries a Zacks Rank #4 (Sell).

Both AT&T and Viacom carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Walt Disney Company Price and Consensus | The Walt Disney Company Quote

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339                                                                                 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Viacom Inc. (VIAB) - free report >>

The Walt Disney Company (DIS) - free report >>

Netflix, Inc. (NFLX) - free report >>

AT&T Inc. (T) - free report >>

More from Zacks Press Releases

You May Like