Netflix has proven its resilience at a time of mounting market volatility, according to Scott Nations of Nations Indexes. The firm’s president and chief investment officer joined CNBC’s ” Power Lunch ” on Tuesday to offer his take on the streaming platform, along with a pair of other market movers. Here’s what he had to say. Netflix Shares of Netflix bucked the broad market decline Tuesday, helped by Morgan Stanley repeating an overweight rating on the dominant streaming platform and naming it a new top pick in media and entertainment. Morgan Stanley’s price target of $1,150 implies 33% upside from Netflix’s Monday close. Nations was similarly bullish, saying he would be a buyer at the stock’s current price. As proof of Netflix’s strong business model, he pointed to the stock’s year-to-date pullback of just 2% against the S & P 500’s 15% decline during the same period. “It makes a tremendous amount of sense to consider it a safe haven,” Nations said. As additional catalysts, Nations pointed to Netflix’s next earnings report on April 17, expecting year-over-year growth in earnings. He added that a weakening economy may also drive more subscribers to Netflix’s advertising-supported tier. Wells Fargo Shares of Well Fargo were down a fraction Tuesday after briefly climbing as much as 5.6% following an upgrade to overweight from equal weight at Piper Sandler. As a catalyst for the upgrade, analyst R. Scott Siefers said the stock was at an attractive entry point after its recent decline. The analyst’s price target of $77 per share implied potential upside of 24%. Nations echoed that bullish view, but in his view, the stock isn’t particularly cheap, especially compared to Citigroup — although it is trading at a cheaper price-to-book ratio than JPMorgan , he said. “The important thing is that they made important changes over the past few years to move past their account opening scandal,” he added. “They’ve streamlined some business functions to increase profitability — fee-based products — which is a great thing.” Carvana Shares of Carvana climbed 5% on Tuesday after the used car e-commerce platform announced a new auction and reconditioning “Megasite” in Phoenix. Nations, however, is cautious on the stock. While Carvana has posted upside earnings surprises in the past, the investor was doubtful that will be repeated. “The EPS expectations have grown by 20 cents to 72 cents a share over the last 60 days. I think it’s going to be tough for the company to do that,” he said. Nations added: “PE is above 54, meaning it’s twice as expensive as Nvidia . I’m not a big fan at this level.” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
