Bull Market Bonanza: Two Stellar Stocks Down 41% and 51% to Buy Now

Last updated: July 4, 2024

stock_market_graphThe stock market’s on fire in 2024. The S&P 500 has jumped 14.5%, and the tech-heavy Nasdaq Composite has surged 18%.

High-profile names like Apple, Nvidia, and Amazon are setting new records, fueled by upbeat earnings and AI buzz.

But don’t overlook the gems still trading far below their peaks. Here are two standout stocks that offer great value and long-term potential.

Altria: A Defensive Dynamo with Dividends Galore

Altria (MO -0.22%) has climbed 13% year to date but remains 41% below its high. The tobacco titan, despite its dominance with Marlboro, faces a tough road as smoking declines.

Revenue and adjusted earnings fell about 2.5%, with cigarette sales dropping 10% year over year. Yet, Altria has boosted earnings per share by 26% over five years, thanks to price hikes and stock buybacks.

Currently trading at less than nine times this year’s expected profits, Altria offers a hefty 8.6% dividend yield. Last August, this business upped its dividend by 4.3%, marking its 58th increase in 54 years.

Despite challenges, Altria is investing in smokeless products, maintaining a strong earnings base and sustainable dividend. It’s a solid defensive pick with growth potential.

Disney: The Comeback Kid in Entertainment

Disney (DIS 0.63%) remains the king of entertainment, boasting a top-tier film slate, global theme parks, and an unmatched content library.

With $89 billion in trailing-12-month revenue, it’s 40% higher than three years ago. So why is the stock down 51%?

Volatility. Disney’s rollercoaster ride from pandemic lows saw parks shuttered, but now they’re back in full swing, with a 10% revenue increase in Q2 2024.

Streaming, making up more than half of entertainment revenue, hit profitability sans ESPN+ in Q2, with full profitability expected by fiscal year-end.

Linear networks and films are struggling as viewers shift to streaming, impacting cable and ad revenues. However, CEO Bob Iger’s return has brought stability and renewed investor confidence.

His focus on Disney+ profitability, revitalizing parks, and empowering creatives is setting the stage for a brighter future.

Disney stock is up 13% this year, signaling cautious optimism. Long-term, it’s poised to reclaim its market-beating status.

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About The Author

Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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