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Yahoo
13 hours ago
- Business
- Yahoo
Netflix Stock (NFLX) Maintains Bullish Tempo Despite Nosebleed Valuation
Netflix (NFLX) stock has been trading above the 50-week moving average in price for about a year and a half, but that can't deter the market. Investors recognize that this is one of the most durable stocks, driven by an addictive flywheel of growth in recurring revenue. As TipRanks data shows, NFLX has consistently grown paid memberships since 2020—a remarkable feat, considering the global competition it faces. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter This is a company that has evolved from a DVD rental disruptor into a global streaming leader, now backed by financials driven by ad-tier growth, an AI-powered studio, and a powerful live content strategy. The only element that's not to love is the valuation, but sometimes the best investments thrive despite that predicament, so I'm staying bullish on NFLX stock. Netflix has established itself as a truly global enterprise, now available in over 190 countries. It continues to demonstrate strong user engagement, holding a 7.5% share of U.S. television viewership. Its pricing strength is evident in its average revenue per user of $17.20 per month in North America and Canada. While the company faces competitive pressures from short-form video platforms such as TikTok and YouTube, as well as saturation in mature markets, these challenges are consistent with the realities of being a market leader. In any thriving sector, competitors will inevitably seek to gain ground, but well-established organizations like Netflix have consistently demonstrated resilience and adaptability in maintaining their leadership positions. Netflix's growth performance remains impressive. For example, its forward diluted earnings per share are projected to grow by 37%, significantly outpacing the sector average of 10%. Although this is reflected in its forward non-GAAP price-to-earnings ratio of 49—versus 13 for the sector—this valuation appears proportionate when considering the company's earnings growth rate, which is 3.7 times higher than the sector's, effectively aligning with its relative valuation multiple. Financially, Netflix is on solid footing. The company has reduced its net debt to approximately $7.9 billion, highlighting the success of its self-sustaining content investment strategy. With expected free cash flow of around $8 billion in fiscal year 2025, management has been able to allocate substantial resources to shareholder returns, including $3.5 billion in share repurchases as of Q1. These achievements are underpinned by a global subscriber base approaching 300 million. Recent growth initiatives, including password-sharing controls and the introduction of an ad-supported tier, have contributed meaningfully to this momentum. Netflix's ad-supported tier has experienced rapid uptake, now reaching approximately 94 million users. Ad revenue is projected to double in fiscal year 2025, reflecting the success of this segment. To further optimize monetization and support shareholder returns, Netflix has developed a proprietary ad-tech platform designed to improve targeting and increase revenue per user. These developments are part of a broader, well-integrated ecosystem that enables both revenue growth and margin expansion. In essence, Netflix has developed a business model that generates long-term value, thereby reinforcing its attractiveness as an investment opportunity. Under a base-case scenario, Netflix could generate approximately $28 in trailing twelve-month normalized earnings per share by mid-2026. Assuming a modest contraction in its non-GAAP price-to-earnings ratio to 50 (down from the current 59, in line with expected growth normalization), this would imply a stock price of roughly $1,400 in a year. Given today's price of $1,280, that equates to nearly a 10% upside potential. While this return is respectable, it may not meet the threshold for more aggressive investors seeking 20–30% annualized gains. The company's strong fundamentals and strategic vision explain why its stock has outperformed the S&P 500 (SPX) so far this year. Operationally, Netflix continues to demonstrate forward-thinking leadership. The company is investing in AI to enhance its content development capabilities, with a focus on producing high-margin, lower-budget titles. This includes an emphasis on quality storytelling—such as international productions with subtitles—over costly star-driven projects. In many respects, Netflix embodies the spirit of a lean, innovative startup that has successfully scaled while maintaining its core identity. That consistency is commendable. On Wall Street, Netflix has a consensus Strong Buy rating based on 29 Buys, nine Holds, and zero Sells. However, the average NFLX stock price target is $1,255.76, indicating a 1.5% downside over the next 12 months. Current analyst consensus reinforces my earlier point regarding the stock's premium valuation. However, I believe Netflix still has considerable momentum and over the long term, any significant decline in the stock is unlikely to occur without an external catalyst. Fundamentally, Netflix remains on a solid trajectory. Clearly, this isn't a stock to aggressively accumulate at current levels. It may be prudent to wait for a more attractive valuation. That said, I remain bullish on Netflix's long-term prospects. The company is led by a competent management team and benefits from a strong competitive moat built around a financially disciplined and strategically integrated digital entertainment ecosystem. Like all equities, Netflix will inevitably face periods of pullback, and when that happens, I'm prepared to step in to add to my position at more favorable prices. 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Yahoo
20 hours ago
- Business
- Yahoo
Up Over 100%: These 2 Monster Growth Stocks Earn an Upgrade
Growth investing is a perennially popular strategy – and for good reason. While not all growth stocks are profitable, many are driven by strong business fundamentals and innovative products. These characteristics can fuel long-term appreciation and make them attractive components of a growth-focused portfolio. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Of course, there's a common caveat: past performance doesn't guarantee future returns – and that's absolutely true. Still, when strong past performance is paired with solid fundamentals and robust forward-looking metrics, it can offer valuable insight. It's not about blindly chasing momentum, but rather recognizing when a stock's surge is backed by substance. That's precisely the case with the real 'monster growth' stocks – ones that have recently posted gains of 100% or more. And they're not just attracting investor attention; they're winning over some of Wall Street's top analysts as well. In fact, some recent upgrades signal growing confidence in their continued trajectory. We dove into the TipRanks database to see which names stand out, and found two of those 'monster growth' stocks with impressive gains, strong Buy ratings, and bullish commentary from analysts. Let's take a closer look. The Metals Company (TMC) The first stock we'll look at is a niche company – but one with a lot of potential. The Metals Company focuses on the biggest mining opportunity of the near future – the exploration and exploitation of metal deposits on the deep sea floor. Specifically, the company aims to locate and recover deposits of polymetallic nodules, a rock-metal alloy deposit that forms naturally on the abyssal sea floor through the precipitation of metals from seawater. The potential here lies in the particular metals that form polymetallic nodules – nickel sulfate, cobalt sulfate, copper cathode, and manganese silicate. These alloys contain four of the most important base metals in today's industrial world, metals that are essential in battery production. The sea floor is covered with them, forming a priceless resource at a time when land-based mining is facing a combination of rising costs and falling yields. The Metals Company has the long-term goal of starting a mining operation to recover polymetallic nodules. The company, in May, submitted to the National Oceanic and Atmospheric Administration its first application for a commercial recovery permit in line with the US Seabed Mining Code. The application is the first step toward regulatory approval of operations. The permit application followed President Trump's April 24 executive order prioritizing the exploration and exploitation of offshore resources in critical minerals. That was not the only move the company has made toward setting up operations. Early this month, The Metals Company entered a sponsorship agreement with the Pacific island nation of Nauru for the development of seafloor resources, and on June 16 it announced an investment from Korea Zinc specifically to develop deep-sea critical resources. The Korea Zinc investment totals $85.2 million. All of this could explain why The Metals Company has seen its stock gain 557% in the year to date, despite the company being entirely pre-revenue and currently running quarterly earnings losses. In coverage for Wedbush, analyst Daniel Ives explains the attractions of this stock. 'We have significantly increased confidence in the long-term TMC growth story following the Executive Order signed by President Trump at the end of April along with our recent industry checks to boost domestic critical mineral supply through deep sea mining,' the analyst commented. Ives goes on to outline the company's current state and the foundation it has built to support its future operations, writing, 'The major theme holding TMC back was the lack of a regulatory framework and the recent Executive Order allows the company to bypass the UN-backed ISA and receive a permit to begin commercial production in the Clarion Clipperton Zone much sooner and more likely than before the Trump Administration took over in January. The company has also raised over $120+ million in cash over the past month in strategic investments, including ~$85 million from Korea Zinc on June 16th, which has significantly bolstered its balance sheet to continue to aggressively invest in this generational opportunity with major support from the US government.' For Ives, this situation justifies bumping TMC shares up from Neutral to Outperform (i.e., Buy), and he backs that stance with an $11 price target (up from $6) that indicates his confidence in a 48.5% upside for the coming year. (To watch Ives' track record, click here) There are only 3 recent analyst reviews on record for TMC stock, but they are unanimously positive and give the shares a Strong Buy consensus rating. The stock is priced at $7.47, and its recent gains have pushed it right up to the $7.50 average price target. (See TMC stock forecast) DoorDash (DASH) The next growth stock we'll look at is a familiar name, DoorDash. This Silicon Valley tech firm was founded 12 years ago and built itself up as a leading provider of online food ordering and delivery services, not just in the US but in 25 countries around the world. DoorDash boasts that it can connect its customers with their favorite nearby eateries, as well as support local small merchants and economies, providing convenience. DoorDash has accomplished this through something of a paradox. The company prides itself on supporting small businesses and small consumers, with a bent toward both individual merchants and customers, but DoorDash itself is a major company. It has a $100 billion market cap, and generated more than $10 billion in total revenue last year. The company has been expanding its services, too, and in addition to food orders, customers can use the DoorDash service to arrange deliveries of all sorts of products: snacks and groceries, household essentials, flowers, pet supplies, and even alcoholic beverages. In addition, DoorDash can even facilitate package pickups and deliveries with UPS, FedEx, or the Post Office. In an important move, DoorDash announced in May of this year that it had entered into an agreement to acquire the London-based on-demand delivery company Deliveroo. The deal, which is expected to close during 4Q25, is valued at 2.9 billion GBP (almost $4 billion), and will greatly expand DoorDash's presence in Europe. Selling convenience is a solid niche, and DoorDash has positioned itself as a strong player in it. The company has realized quarterly profits since 3Q24, and its most recent quarterly report, 1Q25, showed quarterly revenues of $3.03 billion, up 21% year-over-year – although it came in just under the forecast, missing by $62.5 million. At the bottom line, DoorDash realized an EPS of 44 cents – a figure that marked a strong turnaround from the 6-cent EPS loss reported in 1Q24 and beat the forecast by 6 cents per share. We should note here that DoorDash's stock price is up 109% over the past 12 months. DoorDash has caught the attention – and enthusiasm – of Raymond James analyst Josh Beck, who after taking the measure of this company, has turned even more bullish. 'We upgrade DASH to Strong Buy (from Outperform) following a bottom-up merger analysis and believe the synergy potential with Deliveroo (ROO) is underappreciated,' Beck, who ranks amongst the top 2% of Street stock experts, said. 'RJ forecasts mid-teens EBITDA accretion in 2026 and high-teens in 2027, which lowers the 2027E EV/EBITDA multiple by 2 turns and equates to an EV/E/G multiple < 1x. We see an attractive $260 target price scenario ($350 bull) provided 1) untapped ROO synergies 2) a seemingly growing emphasis on advertising (recent M&A and $1B run-rate disclosure, still well below peers on a %GOV basis) 3) consistent management execution and 4) eventual autonomous tailwinds…' The 5-star analyst's new Strong Buy rating and $260 price target together imply a 9.5% gain for DASH over the course of the coming year. (To watch Beck's track record, click here) This stock has earned a Moderate Buy consensus rating from the Wall Street analysts, whose 27 recent reviews here break down to 19 Buys and 8 Holds. The shares are currently priced at $237.40 and the recent share appreciation has powered that price right past the average price target of $222.15. Given the discrepancy, it will be interesting to see whether analysts raise their targets or downgrade their ratings shortly. (See DASH stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue
Yahoo
20 hours ago
- Business
- Yahoo
Up Over 100%: These 2 Monster Growth Stocks Earn an Upgrade
Growth investing is a perennially popular strategy – and for good reason. While not all growth stocks are profitable, many are driven by strong business fundamentals and innovative products. These characteristics can fuel long-term appreciation and make them attractive components of a growth-focused portfolio. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Of course, there's a common caveat: past performance doesn't guarantee future returns – and that's absolutely true. Still, when strong past performance is paired with solid fundamentals and robust forward-looking metrics, it can offer valuable insight. It's not about blindly chasing momentum, but rather recognizing when a stock's surge is backed by substance. That's precisely the case with the real 'monster growth' stocks – ones that have recently posted gains of 100% or more. And they're not just attracting investor attention; they're winning over some of Wall Street's top analysts as well. In fact, some recent upgrades signal growing confidence in their continued trajectory. We dove into the TipRanks database to see which names stand out, and found two of those 'monster growth' stocks with impressive gains, strong Buy ratings, and bullish commentary from analysts. Let's take a closer look. The Metals Company (TMC) The first stock we'll look at is a niche company – but one with a lot of potential. The Metals Company focuses on the biggest mining opportunity of the near future – the exploration and exploitation of metal deposits on the deep sea floor. Specifically, the company aims to locate and recover deposits of polymetallic nodules, a rock-metal alloy deposit that forms naturally on the abyssal sea floor through the precipitation of metals from seawater. The potential here lies in the particular metals that form polymetallic nodules – nickel sulfate, cobalt sulfate, copper cathode, and manganese silicate. These alloys contain four of the most important base metals in today's industrial world, metals that are essential in battery production. The sea floor is covered with them, forming a priceless resource at a time when land-based mining is facing a combination of rising costs and falling yields. The Metals Company has the long-term goal of starting a mining operation to recover polymetallic nodules. The company, in May, submitted to the National Oceanic and Atmospheric Administration its first application for a commercial recovery permit in line with the US Seabed Mining Code. The application is the first step toward regulatory approval of operations. The permit application followed President Trump's April 24 executive order prioritizing the exploration and exploitation of offshore resources in critical minerals. That was not the only move the company has made toward setting up operations. Early this month, The Metals Company entered a sponsorship agreement with the Pacific island nation of Nauru for the development of seafloor resources, and on June 16 it announced an investment from Korea Zinc specifically to develop deep-sea critical resources. The Korea Zinc investment totals $85.2 million. All of this could explain why The Metals Company has seen its stock gain 557% in the year to date, despite the company being entirely pre-revenue and currently running quarterly earnings losses. In coverage for Wedbush, analyst Daniel Ives explains the attractions of this stock. 'We have significantly increased confidence in the long-term TMC growth story following the Executive Order signed by President Trump at the end of April along with our recent industry checks to boost domestic critical mineral supply through deep sea mining,' the analyst commented. Ives goes on to outline the company's current state and the foundation it has built to support its future operations, writing, 'The major theme holding TMC back was the lack of a regulatory framework and the recent Executive Order allows the company to bypass the UN-backed ISA and receive a permit to begin commercial production in the Clarion Clipperton Zone much sooner and more likely than before the Trump Administration took over in January. The company has also raised over $120+ million in cash over the past month in strategic investments, including ~$85 million from Korea Zinc on June 16th, which has significantly bolstered its balance sheet to continue to aggressively invest in this generational opportunity with major support from the US government.' For Ives, this situation justifies bumping TMC shares up from Neutral to Outperform (i.e., Buy), and he backs that stance with an $11 price target (up from $6) that indicates his confidence in a 48.5% upside for the coming year. (To watch Ives' track record, click here) There are only 3 recent analyst reviews on record for TMC stock, but they are unanimously positive and give the shares a Strong Buy consensus rating. The stock is priced at $7.47, and its recent gains have pushed it right up to the $7.50 average price target. (See TMC stock forecast) DoorDash (DASH) The next growth stock we'll look at is a familiar name, DoorDash. This Silicon Valley tech firm was founded 12 years ago and built itself up as a leading provider of online food ordering and delivery services, not just in the US but in 25 countries around the world. DoorDash boasts that it can connect its customers with their favorite nearby eateries, as well as support local small merchants and economies, providing convenience. DoorDash has accomplished this through something of a paradox. The company prides itself on supporting small businesses and small consumers, with a bent toward both individual merchants and customers, but DoorDash itself is a major company. It has a $100 billion market cap, and generated more than $10 billion in total revenue last year. The company has been expanding its services, too, and in addition to food orders, customers can use the DoorDash service to arrange deliveries of all sorts of products: snacks and groceries, household essentials, flowers, pet supplies, and even alcoholic beverages. In addition, DoorDash can even facilitate package pickups and deliveries with UPS, FedEx, or the Post Office. In an important move, DoorDash announced in May of this year that it had entered into an agreement to acquire the London-based on-demand delivery company Deliveroo. The deal, which is expected to close during 4Q25, is valued at 2.9 billion GBP (almost $4 billion), and will greatly expand DoorDash's presence in Europe. Selling convenience is a solid niche, and DoorDash has positioned itself as a strong player in it. The company has realized quarterly profits since 3Q24, and its most recent quarterly report, 1Q25, showed quarterly revenues of $3.03 billion, up 21% year-over-year – although it came in just under the forecast, missing by $62.5 million. At the bottom line, DoorDash realized an EPS of 44 cents – a figure that marked a strong turnaround from the 6-cent EPS loss reported in 1Q24 and beat the forecast by 6 cents per share. We should note here that DoorDash's stock price is up 109% over the past 12 months. DoorDash has caught the attention – and enthusiasm – of Raymond James analyst Josh Beck, who after taking the measure of this company, has turned even more bullish. 'We upgrade DASH to Strong Buy (from Outperform) following a bottom-up merger analysis and believe the synergy potential with Deliveroo (ROO) is underappreciated,' Beck, who ranks amongst the top 2% of Street stock experts, said. 'RJ forecasts mid-teens EBITDA accretion in 2026 and high-teens in 2027, which lowers the 2027E EV/EBITDA multiple by 2 turns and equates to an EV/E/G multiple < 1x. We see an attractive $260 target price scenario ($350 bull) provided 1) untapped ROO synergies 2) a seemingly growing emphasis on advertising (recent M&A and $1B run-rate disclosure, still well below peers on a %GOV basis) 3) consistent management execution and 4) eventual autonomous tailwinds…' The 5-star analyst's new Strong Buy rating and $260 price target together imply a 9.5% gain for DASH over the course of the coming year. (To watch Beck's track record, click here) This stock has earned a Moderate Buy consensus rating from the Wall Street analysts, whose 27 recent reviews here break down to 19 Buys and 8 Holds. The shares are currently priced at $237.40 and the recent share appreciation has powered that price right past the average price target of $222.15. Given the discrepancy, it will be interesting to see whether analysts raise their targets or downgrade their ratings shortly. (See DASH stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. 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Business Insider
a day ago
- Business
- Business Insider
Walmart Shares Hit by Consumer Confidence, Fulfillment Center Closure
Walmart (WMT) stock dropped 1.3% yesterday following news of a considerable dip in the Consumer Confidence Index for June. Growing concerns about inflation and interest rates have prompted consumers to reconsider their buying behavior, impacting retailers. The news affected shares of major retailers and consumer goods companies, but Walmart was impacted more due to additional negative developments. Confident Investing Starts Here: The company announced the closure of the Sam's Club fulfillment center in Fort Worth, Texas. Sam's Club is Walmart's membership-only warehouse chain. The fulfillment center, known internally as DFW4, handled online orders for Sam's Club in the surrounding area. Commenting on the closure, Walmart said, 'We're continuously evolving our fulfillment network to improve service for our customers and members as their needs change.' The Closure Will Lead to Job Losses According to a Reuters report, the move could also result in job losses. However, Walmart is offering relocation benefits, including a $7,500 transfer bonus. The facility employs about 200 workers, but the exact number of job losses will not be known until employees make their relocation decisions. Following the closure, scheduled for summer, orders previously serviced by DFW4 will be shifted to a new state-of-the-art fulfillment center in Lancaster, Texas, and to three Dallas-area warehouses. Walmart aims to reduce operational costs and improve efficiencies through this relocation. Walmart Accelerates Investments in Automation Walmart has been strategically ramping up investments in automation to accelerate its e-commerce operations. Employing robotics and automation at warehouses and fulfillment centers typically shortens the delivery times. These steps have helped Walmart to report its first-ever profit in its online business in Q1FY25. Rival Amazon (AMZN) is also investing billions in ramping-up automation at its warehouses to streamline operations. Meanwhile, sales at Sam's Club jumped 27% year-over-year in Q1. The company has witnessed a notable shift in consumer purchasing patterns. More than 50% of Sam's Club members have shifted to 'digital transactions in some form,' the company said. Is Walmart a Long-Term Buy? Analysts remain highly optimistic about Walmart's long-term stock trajectory. On TipRanks, WMT stock has a Strong Buy consensus rating based on 28 Buys and one Hold rating. Also, the average Walmart price target of $109.71 implies 14.3% upside potential from current levels. Year-to-date, WMT stock has gained 6.8%.


Business Insider
a day ago
- Business
- Business Insider
RBC Capital Sticks to Their Buy Rating for Moonpig Group Plc (MOON)
RBC Capital analyst Ross Broadfoot maintained a Buy rating on Moonpig Group Plc (MOON – Research Report) yesterday and set a price target of p305.00. The company's shares closed yesterday at p221.00. Confident Investing Starts Here: Broadfoot covers the Consumer Cyclical sector, focusing on stocks such as Hollywood Bowl, Moonpig Group Plc, and Domino's Pizza. According to TipRanks, Broadfoot has an average return of -6.1% and a 31.58% success rate on recommended stocks. Moonpig Group Plc has an analyst consensus of Strong Buy, with a price target consensus of p319.17, a 44.42% upside from current levels. In a report released on June 23, Deutsche Bank also maintained a Buy rating on the stock with a £2.90 price target.