Netflix Inc (NASDAQ: NFLX) stock recorded a new 52-week high on Feb. 27. The stock touched a high of $605.36 during the trading day - a level unseen over the past year.
The Enormous Eight
Netflix is a part of the 'The Enormous Eight' (as labeled by Charlie Bilello) group of stocks. The others include Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms Inc (NASDAQ: META), Nvidia Corp (NASDAQ: NVDA), Tesla Inc (NASDAQ: TSLA), Amazon.com Inc (NASDAQ: AMZN), Microsoft Corp (NASDAQ: MSFT) and Apple Inc (NASDAQ: AAPL).
Netflix Stock: Up 22% YTD
The streaming platform's stock is up over 84% in the past year. So far in 2024, the stock has gained 22%.
With the stock at its 52-week high, investors often wonder whether now is a good time to take profits or ride further up with the momentum.
Valuations Spell Caution: Forward valuations indicate Netflix stock at a 35.25 P/E ratio is trading at a more elevated price-to-earnings multiple than five of its Enormous Eight peers - with:
- Alphabet stock at 20.71
- Meta Platforms stock at 24.37
- Nvidia stock at 32.08
- Microsoft stock at 34.82
- Apple stock at 27.82
Wall Street analysts, too, appear to be divided in their view on the company's potential.
From those analysts who reviewed the stock in January-February, a majority appear to see a downside to Netflix stock from current levels.
For those invested in the stock, a 52-week high could be a time to take some profits off the table. For those looking to enter, now may not be the best time.