NFLX is an attractive buy due to low valuation (1.31 PEG) and solid growth outlook (15-20%).
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Still holding up on stocks like uh Meta and Netflix up a couple percent.
Oh, look at Netflix. What a rejection that is. Oh my gosh. It's two It's literally to my line to the exact penny. That was a bottom over here in January 25, April 25. Uh, and then at some point I must have added it again.
But, uh, that's a pretty remarkable rejection right there to the penny on our line. You know what that deserves? That deserves making that gray line. Honestly, that was so good to the penny.
I'm going to go straight to blue on that. And we'll go ahead and thicken that up a little bit. Lock that into place. That just became a juicy breakout line right there for uh Netflix, which is good.
It's an opportunity because Netflix is, you know, it's it's pretty cheap. It's come down quite a lot. Uh we should do an updated valuation on it. So, we're expecting $3.58 of earnings by December.
Uh 8181 divided by $3.58 that puts us at about 22.8 times.
Growth rate for Netflix is still recovering from some of the expenses here, at least projected for next year, but thereafter it's expecting to grow up towards about 20%.
So that gives us a growth rate of about 15.7 to 20%, depending on how you want to uh peg it. So 15.7 to 20 and then again our PE ratio at this guy is 22. Uh so if I split the difference there I go with about 17.5% average growth.
This Netflix right now trades for about 1.3 1.31 as a PEG ratio, which is interesting because they bring about 30% to the bottom line. That's really good.
Netflix is actually relatively similarly valued to um what's it called to Salesforce at least on a PEG ratio basis. Uh even the uh even our stock AI tab has at least a 56% upside in for Netflix.
What this channel has said about $NFLX
Meet Kevin has 5 calls on this stock; only the adjacent ones are shown.