>
  1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
James Li
James Li
Articles (1494)  | Author's Website |

4 Entertainment Companies Outperforming the S&P 500 in 2020

Stocks with high profitability as investors prepare for the New Year

Dow nears all-time high on final days of 2020

On Wednesday, the Dow Jones Industrial Average traded around 30,475.75, up 140 points from Tuesday's close of 30,335.67.

b325bb55acb70ea60e07052f1cf0fa29.png

U.S. stock markets wavered around all-time highs on the heels of the U.K. approving the University of Oxford and AstraZeneca PLC's (NASDAQ:AZN) new Coronavirus vaccine for emergency use in the country.

The approval comes as Covid-19 cases continue climbing in the U.K and the U.S. According to a CNBC analysis of John Hopkins University statistics, U.S. Coronavirus cases are increasing over 180,000 per day based on a seven-day average. Given the continued surge in cases, governments heightened lockdown orders ahead of the New Year.

As such, investors may find opportunities in entertainment companies that have high profitability. Further, entertainment companies may also benefit from broadcasts of New Year celebrations and postseason football, among other tailwinds.

Thus, as investors approach the beginning of 2021, here are four entertainment companies to consider that outperformed the S&P 500 index in 2020: Charter Communications Inc. (NASDAQ:CHTR), The Walt Disney Co. (NYSE:DIS), Dolby Laboratories Inc. (NYSE:DLB) and Netflix Inc. (NASDAQ:NFLX).

Charter Communications

Shares of Charter Communications traded around $657.84 on Dec. 30, outperforming the S&P 500 benchmark over the past year by approximately 21.69%.

4463141d7198f09f4024c33f7ee4af0d.png

The Connecticut-based company provides television, internet and phone services across the U.S., with brands including Spectrum Business. GuruFocus ranks Charter's profitability 7 out of 10 on the back of profit margins and returns outperforming over 76% of global competitors.

cac142530ae8b8810a695adb81c38559.png

Gurus with large holdings in Charter include Dodge & Cox and Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B).

39e0717eb8ce8e6a60ce36c1c8cd9092.png

Walt Disney

Shares of Walt Disney traded around $182.43 on Dec. 30, outperforming the benchmark by approximately 7.19% over the past year.

a7fa76ff36f1c5efa4b09015df8e1a6a.png

The Burbank, California-based entertainment giant operates theme parks around the globe and broadcasting networks like ESPN. GuruFocus ranks Walt Disney's profitability 7 out of 10 driven on an operating margin that outperforms over 64% of global competitors.

fd38ae02804e7dba1e5f1f8c42931653.png

Gurus with large holdings in Walt Disney include Ken Fisher (Trades, Portfolio), Philippe Laffont (Trades, Portfolio) and Daniel Loeb (Trades, Portfolio).

b86ded0b9778bc5c408814658fd8e417.png

Dolby Laboratories

Shares of Dolby Laboratories traded around $97.21 on Dec. 30, outperforming the S&P 500 by approximately 24.69% over the trailing 12-month period.

b8d56f654fb32b34003e90df18472182.png

The San Francisco-based company develops audio and surround sound for cinema, broadcast, home audio systems and in-car entertainment systems. GuruFocus ranks the company's financial strength 9 out of 10 on several positive investing signs, which include a double-digit Altman Z-score and an interest coverage ratio that outperforms over 88% of global competitors.

021db2996691b225f43e097e1d8ff6c7.png

Netflix

Shares of Netflix traded around $526.99 on Dec. 30, outperforming the S&P 500 by approximately 48.67% over the past year.

8d17cbd5ec542adf5b74e896466a2c79.png

GuruFocus ranks the Los Gatos, California-based streaming giant's profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased approximately 18% per year on average over the past five years and is outperforming over 87% of global competitors.

0fe5331ff5e24f098cee87df6687bd42.png

Disclosure: No positions.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by James Li


User Generated Screeners


pjmason14Momentum
wigbertHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)