If you are hesitant to hop on the streaming bandwagon, consider the fact that around 90% of all households in America subscribe to at least one streaming service. Even if you do not subscribe to a streaming service or do not think highly of any particular service, it is important to recognize the fact that more and more people are cutting the cord on cable in favor of a la carte streaming services.
Let’s shift the spotlight off of Disney for a moment to focus on three alternative streaming stocks that every investor should consider adding to his or her portfolio: Apple (AAPL), Amazon.com (AMZN), and Roku (ROKU).
Apple TV is gradually growing in popularity. AAPL recently partnered with Genius Brands to feature the company’s educational entertainment cartoon programming on its streaming service, dubbed Apple TV, available for a mere $4.99 per month. This content addition is just one component of AAPL’s streaming strategy. AAPL does plenty more than provide a streaming service so investors should not hesitate to invest in this electronics stalwart. Additional examples of AAPL offerings include Apple phones, the company’s App Store, AppleCare, Apple Music, Apple Pay, and more.
AAPL has an “A” grade in the POWR Ratings Trade Grade component. The stock also has “B” grades in the Industry Rank, Peer Grade, and Buy & Hold Grade components. AAPL is ranked in the top five of 30 in the Technology – Hardware space.
Take a look at the analysts’ opinions on AAPL and you will find they paint a rosy picture, setting an average price target of $126.45, meaning there is the potential for the stock to increase by 5%. AAPL should return to the $130-$135 range where it traded in September, fueled by an increase in Apple TV subscriptions resulting from the second wave of the coronavirus.
AMZN’s seemingly ubiquitous delivery trucks are replacing malls, stand-alone retail stores, and other brick-and-mortar shopping facilities, bringing products directly to customers. However, AMZN does plenty more than sell and deliver products. The company’s Amazon Prime streaming service is rapidly growing in popularity. Featuring hit titles such as Jack Ryan, Utopia, The Expanse, The Man in the High Castle, and The Marvelous Mrs. Maisel, AMZN’s streaming service certainly has its merits.
Check out AMZN’s POWR Ratings and you will find the stock has an “A” grade in the Industry Rank component along with “B” grades in the Peer Grade, Buy & Hold Grade, and Trade Grade components. AMZN is ranked in the top five of nearly 60 Internet stocks. The top analysts have set an average price target of $3,818.46 for the stock, indicating it will pop by more than 21% in the months ahead.
ROKU is the top TV streaming platform company in the entire country when measured by the aggregate number of hours streamed. If that weren’t enough to pique your interest as an investor, consider the fact that the company has expanded its horizons by making its own TVs with streaming technology built-in. With 40 million active accounts ROKU is perfectly positioned as the masses continue to shift away from cable to streaming services. Furthermore, the spike in advertising dollars fueled by the monetization of video ad impressions bodes well for this streaming content superstar.
The POWR Ratings indicate ROKU is nearly flawless, highlighted by an “A” Trade Grade along with “B” grades in the Industry Rank, Peer Grade, and Buy & Hold Grade components. Of the 20 analysts to have analyzed ROKU in-depth, 13 insist it is worthy of a “Buy” rating, five recommend it as a “Hold” and only two consider it to be a “Sell”.
ROKU hit $253 earlier this month, a level the stock could easily return to before the holiday season – and the pandemic -come to an end.
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AAPL shares were trading at $120.47 per share on Tuesday afternoon, up $0.17 (+0.14%). Year-to-date, AAPL has gained 65.29%, versus a 13.98% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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