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5 Undervalued Entertainment Stocks to Watch In 2023
The entertainment industry has been through a lot in the past year. The pandemic has forced movie theaters to close, production to halt, and major releases to be delayed. But as vaccines roll out and life begins to return to normal, the entertainment industry is poised for a comeback. Here are five undervalued entertainment stocks to watch in 2023.
1. AMC Entertainment (AMC)
AMC was one of the hardest hit stocks in the pandemic. The world’s largest movie theater chain was forced to close all of its locations in the United States and many other countries. But as vaccines roll out and people begin to feel comfortable going back to movie theaters, AMC is poised for a comeback. The company has already begun to reopen theaters in the United States and other countries, and it is expected that by 2023 most of AMC’s locations will be back up and running.
2. Walt Disney (DIS)
Disney was also hit hard by the pandemic. The company had to close its theme parks, halt production on its movies and TV shows, and delay the release of some of its most anticipated films. But as the world begins to reopen, Disney is ready to bounce back. The company has already reopened its theme parks in China and is in the process of reopening its parks in the United States. It has also resumed production on its movies and TV shows and is releasing some of its most anticipated films in 2023.
3. ViacomCBS (VIAC)
ViacomCBS was created in 2019 when Viacom and CBS merged. The company owns a number of major entertainment brands, including CBS, Showtime, Nickelodeon, and MTV. ViacomCBS was hit hard by the pandemic, but it is expected to rebound in 2023.
4. Comcast (CMCSA)
Comcast is a major media and entertainment company. It owns NBCUniversal, which includes the NBC television network, Universal Studios, and a number of other entertainment brands. Comcast was also hit hard by the pandemic, but it is expected to rebound in 2023.
5. Sony (SNE)
Sony is a Japanese electronics and entertainment company. It owns the PlayStation gaming platform, Sony Pictures, and a number of other entertainment brands.
These are five undervalued entertainment stocks to watch in 2023. As the world begins to reopen, these companies are poised for a comeback.
Walt Disney Co (NYSE: DIS)
Walt Disney Co (NYSE: DIS) is one of the world's largest entertainment companies. It operates theme parks, resorts, television networks, and movie studios. The company has been hurt by the pandemic, but its strong brands and diversified businesses should help it recover. Disney's stock is down about 20% from its 52-week high, making it a good value at its current price.
Investors should keep an eye on Disney's streaming business, which has been growing rapidly. The company's new streaming service, Disney+, has over 86 million subscribers. Disney+ is just one part of the company's direct-to-consumer business, which also includes ESPN+, Hulu, and Hotstar. This business is expected to generate over $10 billion in revenue in 2023.
Disney's theme parks have also been struggling due to the pandemic. However, the company is starting to reopen its parks and should benefit from pent-up demand. Theme parks are a small part of Disney's overall business, but they are an important driver of earnings growth.
Overall, Disney is a well-positioned entertainment stock that should benefit from the gradual return to normalcy. The stock is down from its highs.
Comcast Corporation (NASDAQ: CMCSA)
Comcast Corporation (NASDAQ: CMCSA) is a global entertainment and media company with operations in cable communications, filmed entertainment, and theme parks. The company has a market cap of $247 billion and is expected to generate $93 billion in revenue in 2023. Comcast is a diversified company with a strong portfolio of businesses that provide it with a hedge against economic downturns. The company's cable communications business provides it with a reliable source of income, while its filmed entertainment and theme park businesses provide it with growth potential. Comcast is a well-positioned company that is expected to generate strong returns for shareholders in the years ahead.
National Amusements (NASDAQ: FUN)
National Amusements is a holding company that owns and operates movie theaters. The company was founded in 1936 and is headquartered in Dedham, Massachusetts. As of December 2020, National Amusements had a market capitalization of $2.4 billion. The company operates 1,500 movie screens in the United States, United Kingdom, and Latin America. National Amusements is majority-owned by Sumner Redstone, who also controls CBS Corporation and ViacomCBS.
The company has been hit hard by the COVID-19 pandemic, as movie theaters have been closed for much of the year. However, with vaccines being rolled out and the pandemic hopefully coming to an end in the next year or so, National Amusements should be able to rebound. The company has a strong balance sheet with $1.1 billion in cash and no debt. This should help it weather the storm and emerge as a strong competitor when the industry recovers.
Lionsgate (NYSE: LGF-A)
Lionsgate is one of the largest entertainment companies in the world, with a market capitalization of $8.4 billion. The company produces, finances, and distributes films and television shows. It also has a large presence in the gaming industry. In 2023, Lionsgate is expected to release several highly anticipated films, including "The Hunger Games: Mockingjay - Part 2" and "The Divergent Series: Allegiant." The company's stock has been undervalued in recent years, and it is expected to outperform the market in 2023.
Six Flags Entertainment Corporation (NYSE: SIX)
Six Flags Entertainment Corporation (NYSE: SIX) is a regional theme park operator with properties in the United States, Canada, and Mexico. The company's parks feature a variety of rides, shows, and attractions. Six Flags is one of the largest regional theme park operators in the world, and its parks are some of the most popular tourist destinations in North America.
The company's stock has been undervalued in recent years, but it could be poised for a rebound in 2023. Six Flags reported strong financial results in its most recent quarter, and its parks have been reopened at limited capacity since the summer. With vaccines being rolled out and travel restrictions easing, Six Flags could see a return to normal operations in the coming year.
Investors who are looking for undervalued stocks in the entertainment sector should keep an eye on Six Flags stock in 2023.