#3 – Netflix Inc.
Netflix Inc. (NASDAQ: NFLX) has had an outstanding past several weeks, gaining 22% since September. This performance has caught the attention of analysts, and we’ve seen one downgrade on the stock because of this big move. While we will likely see some profit taking after a run like this, I still like the stock.
Recently, NFLX surged following the announcement that Blockbuster was filing for Chapter 11 bankruptcy. Netflix’s most visible competitor, Blockbuster, represented the bricks-and-mortar video industry that Internet-based companies like Netflix were founded to supplant. With Blockbuster now essentially out of the picture, NFLX has become better-positioned to increase its already rapidly growing subscriber base.
It should come as no surprise that this stock has surged 39% since June. Investors are eagerly awaiting this company’s third-quarter financial report, which will be released on Oct. 20. Analysts are expecting earnings of $0.72 per share, up from earnings of $0.52 per share in the equivalent year-ago quarter, and sales of $551 million, up from $423 million last year.
My Buy Below price on this stock is $172 so be sure to pick up shares before its earnings are announced.