Crashing 51%, 3 Reasons to Buy This Netflix Rival in March and Hold for 5 Years

By Neil Patel – Mar 19, 2026 at 3:17AM ESTKey PointsFrom huge losses to significant operating profits, streaming is now a major tailwind for this business.This company’s most lucrative segment, which leverages its valuable intellectual property, gives it an unrivaled competitive position.Investors can buy this top entertainment stock at a 62% discount to Netflix.The monster success that Netflix has achieved makes it a company that's deserving of all the attention it receives from investors. However, the streaming stock isn't the most attractive opportunity, mainly since its valuation looks expensive right now at a price-to-earnings (P/E) ratio of 37.7. There's another media and entertainment stock that's trading 51% below its all-time record from March 2021 (as of March 16). Despite the plummet, here are three reasons investors might want to buy this Netflix rival in March and hold for five years. Image source: The Motley Fool. This company's streaming segment is exhibiting financial strength The business that investors need to consider buying is Walt Disney (DIS 0.97%). The first reason why is the financial success being exhibited by its direct-to-consumer streaming segment, which includes Disney+ and Hulu (excluding Hulu Live TV). It registered operating income of $1.3 billion in fiscal 2025 (ended Sept. 27, 2025), up 828% from $143 million in the year before. For fiscal 2026, the leadership team expects this segment to post a 10% operating margin. Assuming there's 10% revenue growth this fiscal year, it implies $2.7 billion in operating income will be reported by the Disney+ and Hulu streaming services combined. Compared to the massive losses just a couple of years before, this development is welcomed by investors. Experiences bring the magic of intellectual property to the physical world Disney's video entertainment gets a lot of buzz. However, the most critical segment comes from its experiences, such as its theme parks and cruises. Disney has parks and resorts around the world, and it plans to open one in Abu Dhabi next. It's also significantly expanding its cruise fleet from eight ships now to a total of 13. Management clearly sees a lot of potential for the experiences division. The financial performance is hard to ignore. It boasted a 33% operating margin in the first quarter of fiscal 2026 (ended Dec. 27, 2025). And durable revenue growth has been achieved over the years. It's impossible for competitors to copy what Disney has built. The company owns so much valuable intellectual property that it will likely never run out of ideas to create new experiences. ExpandNYSE: DISWalt DisneyToday's Change(-0.97%) $-0.97Current Price$99.33Key Data PointsMarket Cap$176BDay's Range$99.01 - $101.0452wk Range$80.10 - $124.69Volume637KAvg Vol11MGross Margin31.61%Dividend Yield1.26% The current valuation means now is the time to act Maybe the most convincing reason to scoop up Disney shares in March comes down to the valuation. It's extremely compelling. The stock can be bought right now at a P/E multiple of 14.5. This is a sizable 62% discount to where Netflix currently trades. The market still appears to be cautious, which is understandable. Disney's share price has lost half its value in the past five years, while Netflix is up 83%. But given the desirable qualities the House of Mouse possesses, Disney is poised to be a winning investment over the next five years.Read NextMar 18, 2026 •By Rick MunarrizA Letter to Disney's New CEOMar 18, 2026 •By Jack DelaneyNetflix vs. Disney: Which Streaming Giant Is the Better Buy for 2026 and Beyond?Mar 16, 2026 •By Rick MunarrizOscars? Disney Doesn't Need No Stinkin' Oscar.Mar 16, 2026 •By Matt Frankel, CFPCould Disney Actually Hit $1 Trillion by 2035? Here's the Case For ItMar 15, 2026 •By Neil PatelNetflix vs. Walt Disney: Which Stock Will Make You Richer?Mar 11, 2026 •By Daniel SparksWalt Disney Stock Looks Cheap.

But Is It a Buy?About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedWalt DisneyNYSE: DIS$99.33(-0.97%)-$0.97NetflixNASDAQ: NFLX$94.73(+0.39%)+$0.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.