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Is Netflix Stock a Buy Right Now?

6 years 2 months ago
There's little doubt that Netflix (NASDAQ: NFLX) has been among the clear winners of the ongoing stay-at-home economy: The stock is up an impressive 70% so far this year. To put that into context, the Dow Jones Industrial Average is down about 7%, the S&P 500 sits near bre
The Motley Fool

2 Top Stocks to Buy in July

6 years 2 months ago
America is in a recession, but that doesn't make this is a bad time to invest. Recessions can be the best time to buy stocks because you can pick up quality companies at affordable prices.
The Motley Fool

Earnings: 3 Hot Stocks to Watch This Month

6 years 2 months ago
This has been a wild year for investors. While most stocks fell sharply in February and March during the coronavirus market crash, many have already recovered. Even more, some stocks have soared to new all-time highs, serving up incredible returns to shareholders.
The Motley Fool

Why Every Stock Is a Tech Stock

6 years 2 months ago
In this episode of Rule Breaker Investing: Pet Peeves, Vol. 5, Motley Fool co-founder David Gardner is joined by Motley Fool analyst Karl Thiel to review 5 Stocks Celebrating The 2018 World Cup. Discover how these stocks have performed since they were recommended two years ago.
The Motley Fool

Netflix (NFLX) Stock Is a Winner, But Keep a Close Eye on Valuation

6 years 2 months ago

The coronavirus is here to stay. Well, hopefully not indefinitely, but for longer than anyone was expecting when it first began making headlines at the turn of the year. The recent surge in cases just as the economy was reopening means an additional stay-at-home period might be in the cards. In such a situation, what are we to do? Watch Netflix (NFLX).

That is the basis for the Netflix bull case from Monness analyst Brian White, who said, “Given the expansion of this COVID-19 crisis across a larger swath of the U.S., disrupting more states and further exasperating fears of a second-wave potentially returning to the hardest hit geographies later this year, there is a view developing that this pandemic will be with us longer than many first expected and we believe people will continue to tune into Netflix as a core source of entertainment.”

The 5-star analyst expects another strong showing, when Netflix posts 2Q20 earnings this Thursday (July 16). Although White doesn’t think Netflix will report the same record-breaking number of new subscribers as it did in Q1 – recall, Netflix added 15.8 million global accounts in the first quarter – he still predicts 7.5 million new additions, amounting to a year-over-year increase of 26%. Overall, White’s estimates are in line with the rest of the Street, expecting revenue to increase by 23% year-over-year to $6.05 billion (consensus calls for $6.08 billion) and EPS to come in at $1.81 – identical to the consensus estimate.

The downside is that White expects lower June quarter sales than usual. He forecasts a gain of 5% quarter-over-quarter, which is below the four-year average of 7% quarter-over-quarter growth.

Despite his expectation of lower sales, White reiterated a Buy rating along with a $500 price target. In line with recent trends, that price target is one Netflix has already surpassed on its way to a new high of $548.73. Therefore, the target indicates downside potential of 5%. (To watch White’s track record, click here)

Sentiment is similar across the Street. Based on 22 Buys, 9 Holds and 4 Sells, the analyst consensus rates Netflix a Moderate Buy. However, there’s downside potential of 12%, should the $480.55 average price target be met over the next 12 months. (See Netflix stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

TipRanks

Interesting NFLX Put And Call Options For September 2021

6 years 2 months ago
Investors in Netflix Inc (Symbol: NFLX) saw new options begin trading today, for the September 2021 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 431 days until expiration the newly trading contra
BNK Invest

Netflix Stock Has a Lot to Prove This Week

6 years 2 months ago
The stakes are high for Netflix (NASDAQ: NFLX) this week. The undisputed champ of premium streaming video reports quarterly results shortly after Thursday's market close. With Netflix stock entering this week hitting another all-time high on Friday afternoon -- surging 26% sinc
The Motley Fool
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