Does Disney Belong in Your Portfolio?

With shares of Disney (NYSE:DIS) trading around $73, is DIS an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Disney is a diversified worldwide entertainment company. The company operates in five business segments: media networks, parks and resorts, studio entertainment, consumer products, and interactive. Disney offers entertainment that sends smiles to consumers across a range of countries around the world. Its movies and shows, theme parks, and products have remained a main attraction for many years and will continue well into the future.

Robert Iger, Walt Disney Co.’s chairman and chief executive officer, earned $34.3 million in total pay in fiscal 2013, a 15 percent drop as the company failed to beat its targets as handily as the prior year. Iger’s pay, based on regulatory reporting rules, included $2.5 million in salary, unchanged from a year ago, along with $8.8 million in stock awards, $8.48 million in option awards and a bonus of $13.6 million, according to a filing by Burbank, California-based Disney. His compensation totaled $40.2 million on that basis a year earlier.