The performance of entertainment stocks tends to be closely tied to the economic wellbeing of the countries they operate in.  This space could be in for a bumpy ride given the current environment and potential economic downturn on the horizon.

It’s important to think about how these companies hook in their customers, whether they’re able to hold on to them, and whether they have the financial fortitude to cope with a drawdown in discretionary spending. For that reason, it makes sense to start looking into entertainment stocks to buy, because we’re likely to see the door of opportunity kicked wide open as economic conditions weaken. 

Sure, there are likely some hard times ahead, but the businesses with strong underlying financials and a solid growth plan are likely to continue thriving. They’re also going to be well-positioned to take-off once things turn around. With that in mind, these three companies have consumer loyalty and financial fortitude, so they are worth a look.

Walt Disney Company (DIS)

Disney (NYSE:DIS) has found itself in a tough spot recently, but the return of CEO Bob Iger and a strong value proposition make this company one of the top entertainment stocks to buy. The Disney+ streaming service has been hailed as an important growth avenue for Disney, and it is. But it’s also gobbling up a huge proportion of the the company’s cash. Together with the increased competition in streaming, that part of the business has offered little financial respite.

But the pieces are in place to create a growth engine well into the future. Subscriber growth has been impressive, though given it is a relatively new entrant that’s somewhat to be expected. The financial side is said to follow, with profits expected in 2024, but we have yet to see the fruits of that labor.

Disney’s real value comes from its stable of incredible content, which it squeezes every penny from through streaming, films, merchandise and theme parks. Streaming is the current focus among investors at present and that’s led to some ups and downs. But the company’s solid financial base and enviable mashup of businesses makes this a company worth holding on to. 

Netflix (NFLX)

Before the tech-sector sell off, the valuation of Netflix (NASDAQ:NFLX) had reached nosebleed status. The streaming giant has come back down to earth, and that’s made it a much more reasonable choice among entertainment stocks. Its been plagued by waning subscriber growth and, after years of delivering impressive increases, Netflix is starting to bump up against the sides of the tank.

The company’s subscriber growth issues are a challenge — but it’s not insurmountable. Its working on ways to limit login-sharing, which has seen millions using the service for free. Convincing those who haven’t been paying to sign up rather than switch off is no easy task, but if Netflix can keep its’ content library well-stocked with must-see content, it is certainly possible.

Great content doesn’t come cheap though. Neflix is spending around $17 billion per year to make its service irresistible. This should drive growth moving forward — particularly those dollars aimed at international production and distribution, which should support growth in key emerging markets.

Entain (GMVHY)

Entain (OTCMKTS:GMVHY) is home to a number of popular gambling brands in the UK, where sports and online betting are all legal. It has a strong and growing base of active customers — though admittedly the figures are benefitting from easier comparisons leftover from Covid-19 lockdowns when people couldn’t gamble in person. 

While in-person growth isn’t expected to continue with such vigor, it’s actually the online business that investors should be most concerned with. That’s because this part of the business represents future growth and it is also higher margin. The good news is this part of the business looks healthier than ever. There was some concern that once physical gambling was back on its feet that some of the growth in online would deteriorate, but this doesn’t appear to be the case. 

Entain’s also in a joint venture with MGM Resorts International (NYSE:MGM) in the US with BetMGM. This is a play on the North American iGaming and sports-betting market, which holds massive opportunities. This market is still relatively fractured thanks to differing state laws, but it’s expected to grow by 10.3% per year through 2030. 

All of this potential comes with a fat price tag — Entain’s highly valued. But that’s justified by the group’s impressive growth trajectory, making this one of the best entertainment stocks to buy. 

On the date of publication, Marie Brodbeck did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.