There's no question about it in our minds. Disney is one of the stocks you can buy and hold on to. The mouse knows what he's doing when it comes to buying up and coming entertainment businesses. With Star Wars and Marvel, to name just a couple and the success of the in-house streaming service Disney Plus, it's not hard to see why Disney is so wildly successful. We won't even mention the theme parks and merchandise. However, for smart investors looking to diversify, there are other kid-friendly companies to consider. Here are our top ten stocks to consider if you like Disney.
10. McDonalds Corp: MCD
The fun colors and famous characters are a big part of McDonald's overall success. With kids meals, play centers, and toys, there's no question that MCD is going to serve "billions and billions" more meals. Since the 1940s, consumers have been taking their families out to eat with Ronald and his friends. As 'safe bets' go in the stock market, you can bank on this franchise's family-friendly popularity.
9. Coca Cola Bottling Company Incorporated: COKE
As well known as MCD and Disney, Coca Cola has had its ups and downs, but overall it's been more up. At the time of this writing, they're down a bit, which makes it a great time to buy. People everywhere love soda, and Coke is the biggest name in the popular beverage.
8. Jakks Pacific: JAKK
Like our top pick, we think Jakks Pacific is an undervalued growth stock. The company has a wide array of toy licenses and creates products that are in high demand. While the stock price is up at the moment, it's still one of the least expensive ways to get in on the kids' and families' market. JAKK licenses numerous well-known and adored brands for toy production like the DC Universe, Star Wars, and classics like Cabbage Patch Kids and Care Bears.
7. Target Corporation: TGT
Although Target is a little different from the other brands we've chosen for this list, we have had our eye on them for a while. The price is down after losing sales over the holidays, but this is one brand that' not giving up easily, and we can see good things in their future. TGT may be a little slow in building momentum, but they're changing with the times. They have big things in the works, like product exclusives, and we think Investors.com has it right when they say it's a "Buy Right Now" stock.
6. Mattel Inc: MAT
Mattel has had it rough the last few years, but that's why we think this desirable toy brand is a good investment now. They're trending back upward, and we think the company is going to rise along with Target. Since the low sales effected more than just Target, we see them rising in tandem as TGT pulls themselves out of the mire and fights back against Amazon.
5. Hasboro Inc.: HAS
Finishing out our middle-of-the-list trifecta is Hasbro. Their stock and sales also dipped with Target, and we think that both HAS and MAT are going to be on the rise soon as TGT works their magic. Of the three, Hasbro has done the best, but we'd suggest picking up a little of each to round out your portfolio. The three companies are deeply tied together, and we suspect their fortunes are about to be on the rise in a big way as this year's push back against Amazon gets into its full swing.
4. Six Flags Entertainment Corp: SIX
On the surface, SIX might not seem like the best idea to invest in. However, first impressions can be misleading. Yes, the big theme park company has been on a downtrend for quite some time. However, in the short term, it's time to buy low and wait to sell high as the summer upswing hits the parks later this year. In the long run, SIX just signed a huge deal for parks in China and Saudi Arabia, which means they're expanding. Add to that the nine percent yield and current low prices on stock, and we think they're in for some major growth and a big win if you have the stomach to hold on.
3. Johnson & Johnson: JNJ
Every parent knows JNJ. This massive corporation occupies a huge percentage of the baby market. However, they produce products designed to appeal to all ages. Medical devices, pharmaceuticals, and more also fall under the popular umbrella of Johnson and Johnson. With a history that goes back to the 1800s, we're sure the market for JNJ is not going anywhere.
2. Nintendo Ltd/ADR: NTDOY
Nintendo is a household name. The company has weathered some serious storms and always managed to win their way back into the hearts and minds of children. For nostalgic parents, and even grandparents, Super Mario Brothers, and other classic NES game characters are a source of joy. Seeing their children grow up with the high tech version of the incredible games and characters they loved is a huge draw for Gen X and beyond. We think Nintendo is a solid buy regardless of wobbles in the market.
1. Funko: FNKO
Funko is the top of our list for several reasons. This little toy company has fast become part of every genre, from superheroes to 80s horror movie characters. The incredibly popular Funko has its hands in so many other companies' toys, games, and shows that it has become ubiquitous. Their 'chibi' big-headed style has always been popular, but in recent years, with the globalization of cultures, and ideas this style has seen a sharp incline in its desirability. The price as of this writing is down a bit, but we're confident they'll bounce back. Moreover, Funko may be undervalued as a potential growth stock.
As long as there are people, there will be children. With the population on Earth continuing to expand, the market for these companies isn't going anywhere, and it's likely to keep growing. Adding a few beloved kid-friendly brand names to your stock portfolio is a simple way to assure that your investments are in companies that have a high chance of continued success. Kids are especially susceptible to marketing. Similarly, parents are responsive to their kids. As long as little people need treats, clothing, and entertainment, our top ten picks for stocks like Disney should have a growing share of the market.
Written by Bill Vix
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