3 Stocks To Watch Instead of Netflix

Netflix (NASDAQ: NFLX) has been making headlines with its bid for a potential Warner Bros. (NASDAQ: WBD) deal, with perhaps more negative press following it than positive. Based on the stock price, the news, and its C Zen Rating (hold) on WallStreetZen, some alternatives will likely serve investors better. 

Thankfully, there are strong options, all of which have a Zen Rating of A. Note that while C-rated stocks have an average annual return of +7.53% per year, A-rated stocks have an average annual return of +32.52%. So if you’re looking for something in Netflix’s niche(s) to help out your portfolio, consider the following A-rated stocks.

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1. Alliance Entertainment Holding (NASDAQ: AENT)

AENT is more than one thing, but it is ultimately a player heavily involved in the entertainment industry, including e-commerce, wholesale, and media distribution. Ranging from vinyl records to pop culture collectibles, AENT is diversified enough to likely not be critically affected, regardless of what happens to Netflix or other major players in the coming years.

Yet outside of this, the key idea behind AENT now is growth potential and momentum. It is worth watching right now, given its rise of the last few months and recent climb over the last few days, though note that the stock is more volatile than usual in the wake of the current sentiment.

2. IMAX (NYSE: IMAX)

There’s still a place for movies if they can offer a unique experience, and that’s been IMAX’s core proposition from very early on. The stock has hit a bit of turbulence in the face of Netflix suggesting shorter theatrical releases, but IMAX also had a record Thanksgiving and has an improved outlook from investors lately. System installations are increasing, filmed-for-IMAX content is getting created more often, and the company continues to offer a relatively unique experience.

Looking at the Zen Ratings for IMAX, for the entertainment industry (not the strongest right now) it looks to be a safer option, with a B Component Grade for both Financials and Safety alongside its B for Growth. Investors will want to continue to watch for signs of relatively safe, steady growth amid uncertainty in the entertainment sector.

3. Udemy Inc. (NASDAQ: UDMY)

People sometimes want to learn and be more mindful about what they watch, and UDMY is exactly what they're looking for. The company continues to embrace new technologies (including AI) in interesting ways, offers a solution to a clear need in certain regions, and can be seen as a value pick right now after a 22.71% drop in share price over the last year.

Investors could and should take pause at the poor Momentum Component Grade right now, but it can also be seen as a value pick with good potential. Essentially, they’ll need to decide whether to go against the current tide with UDMY and side with solid fundamentals or explore other options in the online content and education spaces.

You’ll want to get more information on any of the stocks above and many more, and WallStreetZen Premium is just what you need to get it. With it, you’ll get an unlimited watchlist, easy access to all the fundamental information you could want, and more. It’s the perfect companion for when you’re building and fine-tuning your portfolio.

Looking for a more guided approach where you won’t have to stress every day about your portfolio? Then Zen Investor is what you’re looking for. With it, you’ll get regular market commentary from our own Steve Reitmeister, hand-selected stock picks using both our Zen Ratings system and Reitmeister’s 40+ years of investing experience, live webinars, and more.

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