SA Asks: What is the best entertainment stock right now?

[Comcast office in Englewood, CO, USA] JHVEPhoto Entertainment stocks were back in the spotlight this week when Warner Bros. Discovery (WBD [https://seekingalpha.com/symbol/WBD]) announced it was splitting itself into two separate companies [https://seekingalpha.com/news/4456462-warner-bros-discovery-announces-split-into-two-companies], just three years after it was created through a merger of AT&T (T [https://seekingalpha.com/symbol/T]) spinoff WarnerMedia and Discovery. The Walt Disney Company (DIS [https://seekingalpha.com/symbol/DIS]) also made news, announcing on Monday that it had bought the remaining stake in streaming service Hulu [https://seekingalpha.com/news/4456667-walt-disney-closes-deal-to-fully-acquire-hulu] that it didn't already own from Comcast (NASDAQ:CMCSA [https://seekingalpha.com/symbol/CMCSA]) for $439M. Given the recent movement in the entertainment space, we asked Seeking Alpha analysts Gen Alpha [https://seekingalpha.com/author/gen-alpha] and The Value Pendulum [https://seekingalpha.com/author/the-value-pendulum] which stocks they favored in the sector. Gen Alpha [https://seekingalpha.com/author/gen-alpha]: Comcast (NASDAQ:CMCSA [https://seekingalpha.com/symbol/CMCSA]) is my top pick in the media space.

It has a vast array of media assets combined with connectivity and burgeoning theme park businesses. The market seems to be assigning a complexity discount and appears to be overly rotated on losses in broadband subscribers. However, Comcast (NASDAQ:CMCSA [https://seekingalpha.com/symbol/CMCSA]) still managed to grow its adjusted EBITDA last quarter and repurchased 5% of its shares during the first quarter alone. I believe the sum of Comcast's (CMCSA [https://seekingalpha.com/symbol/CMCSA]) parts are worth far more than where the share price is trading at today. In the meantime, investors get a decent dividend yield on this undervalued stock.

The Value Pendulum [https://seekingalpha.com/author/the-value-pendulum]: IMAX Corporation (NYSE:IMAX [https://seekingalpha.com/symbol/IMAX]) has good topline expansion and margin improvement potential, with foreign markets having a lot of promise. For example, the IMAX theater network penetration in a populated nation like India is under 30%. Also, the company can enjoy fixed-cost leverage effects if its theater utilization rises. That is achievable with the increased screening of alternative content such as live sports. * Top Movies and Entertainment Stocks [https://seekingalpha.com/screeners/940837608d-Top-Movies-and-Entertainment-Stocks] * Top Cable and Satellite Stocks [https://seekingalpha.com/screeners/940837608f-Top-Cable-and-Satellite-Stocks] * Top Broadcasting Stocks [https://seekingalpha.com/screeners/9409aed1bc-Top-Broadcasting-Stocks] MORE ON COMCAST, IMAX * IMAX China: Industry Prospects And Share Repurchases Are Key Investment Considerations [https://seekingalpha.com/article/4793465-imax-china-industry-prospects-share-repurchases-key-investment-considerations] * Comcast: A Telecom Giant Evolving Into A Digital Ecosystem [https://seekingalpha.com/article/4792334-comcast-a-telecom-giant-evolving-into-a-digital-ecosystem] * Comcast's Cash Cow Makes It One Of The Best Prospects On The Market [https://seekingalpha.com/article/4790734-comcasts-cash-cow-best-prospects-on-market] * Walt Disney closes deal to fully acquire Hulu [https://seekingalpha.com/news/4456667-walt-disney-closes-deal-to-fully-acquire-hulu] * ‘Lilo & Stitch’ leads quiet weekend as box office slows into summer [https://seekingalpha.com/news/4456393-lilo-and-stitch-leads-quiet-weekend-as-box-office-slows-into-summer]