Netflix’s stock is up 17% this year, but 22% off its 2025 peak. Despite the dip, the company’s revenue increased by 15% year over year, with profits expected to rise by 26%. However, with a high price-to-earnings ratio of 46, investors should proceed with caution.

While Netflix shares can continue to rise, the lack of margin of safety for prospective investors is a concern. The Motley Fool Stock Advisor team did not include Netflix in their list of the 10 best stocks to buy now. Their top picks have historically outperformed the S&P 500, with an average return of 981%.

Read more at Yahoo Finance: Should You Buy Netflix Before 2026?