Netflix stock has doubled over the past five years, with analysts expecting earnings per share to grow by 24% annually. The pending $82 billion acquisition of Warner Bros. will solidify its lead in the entertainment industry. The stock is considered undervalued and poised for market-beating returns over the next five years.

Netflix is dominant in the streaming industry with over 300 million subscribers. Its acquisition of Warner Bros. Discovery for $83 billion will further enhance its position. The stock, trading at a forward P/E multiple of 31, is projected to double in three years based on earnings growth expectations. Opportunities for revenue and earnings growth are vast, especially with the addition of Warner Bros.’ iconic content.

Netflix has significant growth potential, capturing only 10% of TV viewing time in its largest market. Investors holding the stock for the long term could benefit from its attractive valuation relative to potential growth. The company’s library expansion with Warner Bros.’ classics like Harry Potter and Game of Thrones will elevate its status in the entertainment industry.

Read more at Yahoo Finance: 1 Tech Stock That Should Be on Every Investor’s Holiday List