Back to top

Buy Surging Netflix (NFLX) Stock Which Seems Immune to the Coronavirus?

Read MoreHide Full Article

Netflix NFLX shares have surged over 40% since late September to rest near their 52-week highs. More recently, the streaming TV stock has popped over 17% in 2020, amid the coronavirus market selloff.

Netflix stock has easily outpaced Apple AAPL, Microsoft MSFT, and Amazon AMZN, as well as the S&P 500’s 3% decline in 2020. NFLX has, for the most part, been able to stay above the coronavirus selloff because its business model is almost tailor-made for the current conditions.

Netflix doesn’t face supply chain issues and streaming TV is perfect as more and more people are either forced or choose to stay at home. Other work-from-home style stocks such as Slack WORK and Zoom Video Communications ZM are also up big in 2020.

Wall Street is still worried that Disney DIS, Comcast CMCSA, and AT&T T will hurt NFLX’s long-term growth prospects. Yet Netflix beat its own fourth subscriber estimates and it is still by far the largest streaming TV company in the world, with 167 million global users and counting.

Netflix does face real competition from Disney+ and others, but the cord cutting revolution might just be getting started. In fact, roughly 56 million households will have canceled cable or satellite TV subscriptions by 2023, according to eMarketer. This is set to benefit NFLX, Roku (ROKU - Free Report) , and many other streaming-focused firms.

Looking ahead, our Zacks estimates call for Netflix’s adjusted 2020 earnings to climb 47% to $6.06 per share. Meanwhile, its fiscal 2020 revenue is projected to jump 21% to reach $24.4 billion.

NFLX is currently a Zacks Ranks #2 (Buy) and might be worth considering at the moment.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Roku, Inc. (ROKU) - free report >>