Market noise is everywhere. Financial headlines focus on the same handful of stocks while important opportunities – the kind that can meaningfully impact your portfolio – often fly under the radar.
That’s exactly why we publish this watchlist each week.
While most investors get distracted by mainstream stories, we’re digging through earnings reports, analyzing technical setups, and monitoring where institutional money is flowing to identify companies at potential turning points. Our focus isn’t on what’s already priced in, but rather on what the market hasn’t fully recognized yet.
Each week, we spotlight three stocks that deserve your attention. We look for opportunities where timing, valuation, and potential catalysts align to create favorable entry points.
Here’s what we’re watching this week:
Penn Entertainment (PENN)
Penn Entertainment presents a contrarian opportunity as the sports betting and casino operator refocuses on its profitable brick-and-mortar business and capital-efficient iCasino strategy following termination of its ESPN Bet partnership. Trading around $15 per share after falling 26% year-to-date and dropping 10% on the ESPN deal termination announcement, the stock has attracted a Stifel upgrade to buy from hold with a $21 price target implying 43% upside.
CEO Jay Snowden noted the mutual and amicable wind-down of the ESPN collaboration despite significant progress in product offering and ecosystem building.
Stifel analyst Jeffrey Stantial views the ESPN deal termination as actually providing a tailwind for Penn stock:
- Improved capital allocation and strategic focus
- “We believe valuation discounts forthcoming ramp in FCF, driven by inflecting Retail cash flows & pivot to a more capital efficient iCasino-led Interactive strategy”
- Penn’s geographic diversification and documented operating prowess enable competition primarily on product rather than promotional spending
- During period of rising competitor marketing expenses and consumer concerns
The fundamental case centers on Penn’s brick-and-mortar strength and attractive growth pipeline:
- Company reported Q3 revenue of $1.72 billion in line with expectations
- Fiscal 2026 profitability targets remain intact
- Pipeline of growth projects including Joliet casino as key upcoming catalysts
- “Already top-tier iCasino product” with omnichannel user acquisition advantages
- Reallocated development and marketing resources potentially accelerating momentum
Wall Street consensus shows 11 buy ratings versus 9 holds with an average price target of $21.29 representing 46.42% upside, validating Stifel’s constructive view.
The analyst acknowledged that “uncertainty on iCasino execution & margin ramp may remain an overhang for several quarters” but takes comfort in recent market share momentum and resource reallocation benefits.
Netflix (NFLX)
Netflix represents an attractive opportunity following post-earnings weakness that created a buying opportunity in the streaming leader ahead of its announced 10-for-1 stock split. Trading around $1,104 per share with a $468 billion market cap and up more than 20% year-to-date, the company delivered strong Q3 results with $11.5 billion revenue (up 17.2% year-over-year) and $2.66 billion free cash flow (up 21.2%).
A one-time tax dispute with Brazilian authorities costing $619 million caused the bottom line to miss expectations and triggered a sell-off, creating an attractive entry point.
The investment thesis centers on Netflix’s continued streaming dominance and accelerating advertising business:
- Remains the king of streaming despite mounting competition
- Ad business achieved its best quarter ever for ad sales in Q3
- Doubled upfront ad commitments in the United States
- Though advertising still represents relatively small percentage of total sales, rapidly scaling revenue stream should provide meaningful growth acceleration
- Higher-margin business alongside continued membership expansion
The announced 10-for-1 stock split provides additional momentum:
- Makes shares more accessible at approximately $110 post-split versus current $1,100 level
- While splits don’t change business fundamentals, they often signal management confidence
- Wall Street’s current price target of $1,347.32 implies 22.3% upside
The Q3 results demonstrated underlying strength beyond the one-time Brazilian tax issue, with robust free cash flow generation and strong revenue growth supported by membership gains and emerging advertising momentum. The tax dispute won’t have meaningful impact on future results.
For growth investors seeking exposure to the streaming leader with accelerating advertising revenue and stock split catalyst ahead, Netflix’s combination of market dominance, scaling ad business, and Wall Street price targets suggesting 22% upside creates compelling risk-reward at current levels.
Nvidia (NVDA)
Nvidia presents a compelling opportunity ahead of its November 19 earnings report as the undisputed leader in artificial intelligence chips continues showing exceptional revenue growth and strategic positioning. Trading around $188 per share with a $4.6 trillion market cap, the company commands a massive 92% share of the data center GPU market.
Recent financial results demonstrate remarkable momentum:
- $46.7 billion in Q2 fiscal 2026 revenue (up 56% year-over-year)
- $41.1 billion coming from data center operations
- Net income jumped to $26.42 billion, up 59% from a year ago
- Trailing twelve-month revenue reached $165.2 billion
The fundamental story centers on Nvidia’s massive order backlog and expanding partnership ecosystem:
- CEO Jensen Huang announced $500 billion in bookings for Blackwell and Rubin chips at GTC event
- 30% already shipped
- Orders also include networking products
- Extraordinary backlog suggests continued data center revenue expansion
- Supports trajectory toward potential $6 trillion market cap within next 100 days
Nvidia’s strategic activity over recent months shows aggressive positioning across multiple AI infrastructure opportunities:
- $100 billion partnership with OpenAI to fund data center buildout
- 2.9% stake in Nokia
- Partnership with Palantir Technologies for commercial offerings
- $5 billion investment in Intel for data center and PC chip collaboration
- Stakes in CoreWeave and Nebius Group for AI infrastructure
- Investment in Arm Holdings, Applied Digital, and WeRide
- Department of Energy deal to build seven new supercomputers
The China situation, while noteworthy, appears manageable:
- Accounts for 17% of fiscal 2025 revenue
- President Trump indicated he won’t block Nvidia from working out agreements on products other than most sophisticated Blackwell chips
- CEO Huang sounded pessimistic noting Chinese authorities “made it very clear that they don’t want Nvidia to be there right now”
- Even without China resolution, $500 billion order backlog more than offsets potential revenue loss
With earnings November 19 expected to deliver exceptional results and outlook, Nvidia’s combination of market dominance, massive backlog visibility, and strategic positioning creates compelling upside potential heading into the catalyst.