StockStory: Netflix a Buy, Deckers and Universal Health Services to Avoid

Analyst
โดย StockStory·Read original
Summary · why it matters

StockStory recommends buying Netflix while advising investors to sell Deckers and Universal Health Services. Netflix stands out with 15.6% annual growth in global streaming paid memberships over two years, 49.2% annual EPS growth over three years, and a free cash flow margin that expanded by 16.2 percentage points. Deckers is flagged for underwhelming constant currency revenue, an operating margin of 23.4% below the industry average, and a projected 5.1 percentage point decline in free cash flow margin next year. Universal Health Services is seen as having weak comparable store sales trends and lacking free cash flow generation.

Impact on stocks 3

Consumer Discretionary · 1 stocks
Deckers Outdoor Corporation
DECK
▼ NegativeCapitalrelevance

StockStory recommends selling Deckers due to underwhelming revenue, below-average operating margin, and projected decline in free cash flow margin.

Communication Services · 1 stocks
Netflix Inc
NFLX
▲ PositiveCapitalrelevance

StockStory recommends buying Netflix citing strong membership growth, high EPS growth, and expanding free cash flow margin.

Health Care · 1 stocks
Universal Health Services Inc
UHS
▼ NegativeCapitalrelevance

StockStory recommends selling Universal Health Services due to weak comparable store sales and lack of free cash flow generation.