Jim Cramer’s 5 S&P 500 Stock Picks for 2023

3. Netflix, Inc. (NASDAQ:NFLX)

Upside Potential: 10.34%
Gain since Cramer Prediction: 43%
Price to earnings multiple: 35

Netflix, Inc (NASDAQ:NFLX) has been in fine form ever since Cramer reiterated early in the year that it has turned itself around. A 43% year-to-date gain attests to the impressive run as the company continues to affirm its status as a streaming giant. Likewise, Cramer believes the streaming giant has what it takes to generate significant value in 2023.

The company delivered solid second-quarter earnings with revenues of $8.2 billion against the $8.3 billion expected and earnings per share of $3.29 against the $2.86 a share analysts expected. Netflix, Inc (NASDAQ:NFLX) guiding for a significant acceleration in revenue in Q3 underscores underlying growth. The growth is mostly driven by growth in paid memberships due to the rollout of paid account sharing. Its advertising business is also growing at an impressive rate.

While the stock is trading at a premium with a price-to-earnings multiple of 35, Wall Street has an average price target of $466.39, implying a 10.34% upside potential.