The Bull Market Is Here: 2 Great Stocks to Buy Right Now, Down 41% and 51%

The stock market has enjoyed an impressive rally so far in 2024. SNP500 The index rose 14.5%, with the tech-heavy index rising even further. Nasdaq Composite Index Up 18% across the stretch. Thanks to encouraging earnings results and excitement surrounding artificial intelligence (AI) and other trends, notable stocks including: apologize, Nvidiaand Amazon A new ratings high has been reached.

While some of the most popular stocks on the market may continue to climb higher, it would be a mistake to overlook the opportunities in companies that are still trading well below their previous valuation peaks. If you’re looking for investments that offer attractive valuations and strong long-term prospects, here’s why two Fool.com contributors Altria Group (what -0.22%) and Walt Disney (disrespect 0.63%) These are the best stocks to buy right now.

Altria is a strong defensive stock with an excellent dividend profile.

Kiss Sister: Altria shares are up about 13% this year, but the company’s stock is still down about 41% from its peak. The tobacco giant continues to lead the U.S. market with its Marlboro brand, but it faces some long-term headwinds. Customers continue to move away from cigarettes, and that trend looks set to continue.

The company’s revenue and non-GAAP adjusted net income decreased approximately 2.5% each due to lower unit sales in the tobacco segment. Total cigarettes sold during the period decreased approximately 10% year-over-year. However, management reaffirmed its guidance that adjusted net income per share would increase by 2% to 4.5% for the full year.

Thanks to price increases and stock buybacks, Altria has managed to grow its earnings per share by about 26% over the past five years. The company faces a long-term headwind from declining unit volumes, but the stock remains an attractive value.

Altria is trading at less than nine times this year’s expected earnings and pays an 8.6% dividend yield based on the company’s current stock price. Plus, investors who buy the stock today are very likely not going to have to wait long to enjoy even greater returns.

Last August, Altria raised its dividend by about 4.3%, the 58th increase the company has made in 54 years.

The tobacco giant is undoubtedly facing challenging trends in the cigarette market, but it continues to invest and build on its smoke-free product category, and its dividend payments are likely to remain secure for the foreseeable future. Despite demand headwinds, Altria is an attractive defensive stock with a strong earnings base and a large sustainable dividend, while also offering attractive capital growth potential.

Investors are getting excited about Disney again

Jennifer Cybill: Disney is still a company that can win in the entertainment industry, with a strong movie catalog, unparalleled global theme parks, an unrivaled content library, and a host of other gold-star assets. It ranks 47th on the list, with $89 billion in trailing 12-month revenue over the past three years. luck The ranking of America’s largest companies has increased 40% over the past three years. So why has the stock price fallen 51% from its all-time high?

Most are volatile. Disney made a remarkable comeback from the pandemic lows, but various segments have been out of whack since.

The parks were closed and there was no revenue, but that has changed and the parks are showing strong momentum again. Park revenues were up 10% year-over-year in the second quarter of fiscal 2024 (ending March 30). This is a historical trend and will continue unless there is another global pandemic or other catastrophe.

Streaming has skyrocketed over the past few years and now accounts for more than half of entertainment revenue and a quarter of the company’s overall revenue, which comes from a mix of subscription and advertising revenue. Streaming revenue, excluding ESPN+, was profitable for the first time in Q2, and management is guiding that it will be fully profitable by the end of the fiscal year. That would be a big boost to the stock.

Other parts of Disney’s content business, including its linear networks and blockbuster movies, are still struggling. Viewers continue to switch from cable to streaming or cut the cord, which is hurting cable revenues, and the move away from traditional broadcast TV is hurting its advertising business.

Bob Iger’s return as CEO has brought relief to shareholders and a measure of stability to the company. Investors have a lot of confidence in Iger, who led the company through a remarkable period of growth for 15 years before stepping down as CEO in 2020. He returned in an interim role while the company clarified its direction, but his term already runs through 2026. Disney has focused on making Disney+ profitable, bringing magic back to the parks, and giving more freedom to the creatives who make the entire system work.

Disney stock is up 13% this year, and investors are cautiously growing enthusiastic. In the long run, it will return to beating the market.