The Hottest Toy Line This Year Is Disney’s “Frozen”

If you have kids – or even if you don’t – you can’t avoid the song “Let It Go” from the movie “Frozen,” Walt Disney Co.’s (DIS.N) animated mega-hit. A year after the movie’s release, one of the hottest toy lines this holiday season is merchandise from clothes to soap that relates to the movie’s characters — Elsa, Anna and Olaf.

What’s more, given its strong success, Disney announced the construction of a “Frozen” attraction at Walt Disney World Resort. This might mean continued theme park visits for big fans. Partially due to “Frozen’s” success, Disney’s stock is up 27.9% for the year vs. the S&P 500 10.4% (see chart below). We also noted its impressive gains in the last few years in this Idea of the Week.

Source: Eikon/StarMine

Stock price is well-thawed

StarMine’s Price Momentum Model (Price Mo) indicates that Disney’s share price has positive momentum on its side. The model suggests that Disney’s performance in this area outperforms 88% of its peers. It is strong in its long term components, ranking in the 79th percentile. Correspondingly, the bulk of analysts recommend the stock as a Buy/Hold.

Source: Eikon/StarMine

No slippery credit

Various StarMine credit models also suggest that Disney’s credit is solid. The company scores in the top decile of the StarMine Combined Credit Risk (CCR) model score, the most comprehensive StarMine credit model. It scores a 93 in the CCR model which corresponds to implied credit ratings of AA, suggesting it is financially stable.

Source: Eikon/StarMine

Top quality

Moreover, its Earnings Quality score of 77 suggest its cash flow and operating efficiency are in good shape with percentage scores of 80, and 74, respectively. Overall, we expect that the company will see a jump of 4.4% in revenue for the quarter ending December 2014 compared to a year ago. Perhaps investors should not “let it go.”

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