1 Tech Stock That Should Be on Every Investor's Holiday List

• Netflix banal has doubled implicit the past 5 years, and it could repetition that performance.

• The pending woody to get Warner Bros. for $82 cardinal volition cement its pb successful the amusement industry.

• Analysts expect the company's net per stock to turn 24% annually, earlier factoring successful the acquisition.

• 10 stocks we similar amended than Netflix ›

Netflix (NASDAQ: NFLX) banal continues to compound successful worth for semipermanent shareholders. Shares person much than doubled successful worth implicit the past 5 years, which included a steep drawdown successful the 2022 carnivore market.

The institution is already ascendant wrong the streaming manufacture with implicit 300 cardinal subscribers. However, it's making a bold determination to widen its pb with the pending acquisition of Warner Bros. Discovery astatine an $83 cardinal full endeavor value. Best of all, the banal could beryllium considered undervalued heading into 2026, and it is well-positioned to present market-beating returns implicit the adjacent 5 years.

The banal trades astatine a guardant price-to-earnings aggregate of 31 based connected adjacent year's statement net estimate. Before the Warner Bros. woody was announced, analysts were projecting the company's net per stock to turn astatine an annualized complaint of 24% implicit the adjacent respective years. Assuming Netflix delivers connected these expectations -- and its net aggregate holds astatine the existent level -- that is capable net maturation for the banal to treble wrong 3 years.

Though Netflix is simply a household sanction astatine this point, it has important untapped maturation opportunities. It captures lone 10% of TV viewing clip successful its largest market. This debased stock presents opportunities to summation engagement and execute dependable maturation successful gross and earnings. Expanding its room of contented with Warner Bros.' treasure trove of films, including The Wizard of Oz, Harry Potter, Game of Thrones, and different Hollywood classics, volition enactment Netflix connected an adjacent higher pedestal successful the amusement industry.

Investors who tin patiently clasp Netflix banal for the adjacent 5 years and beyond should spot market-beating returns, fixed the stock's charismatic valuation comparative to its imaginable concern growth.

Before you bargain banal successful Netflix, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Netflix wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $540,587!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,118,210!*