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3 Stocks Warren Buffett Could Love in This Market

Using the P/E Gap as a measurement for value

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DreamWorks Animation

Even if you assume that the market is fairly valued, there are certain industries that project very well over the coming 12 months. One space in particular to watch is the film and movie industry. As the consumer gains more confidence, movie-going will see strong and growing sales that can propel stocks in that group higher.

Specifically, companies in the animation space can seem to do no wrong. Put up a family-friendly animated film and you have the chance for a blockbuster. There are risks of course, but the formula is tried and true. That bodes well for DreamWorks (DWA) The company rated highly at the end of September using the P/E Gap approach. Analysts expect the company to grow profits next year by more than 40%. With shares trading for just 30 times 2014 estimated earnings, look for the stock to rally from current prices even in a fairly valued market environment.

Article printed from InvestorPlace Media,

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