Scary Valuations for These Two Companies
Netflix and Constellation Brands offer more trick than treat at today's prices.
Jeremy Glaser: It may be Halloween but some of the scariest things we've seen recently are not trick-or-treaters but the valuations on Netflix and Constellation Brands.
It's not that we don't like these businesses. In fact, they have narrow moat ratings, meaning both should be able to fend off competitors for years to come. At the right price, we'd be happy owners, but valuation matters. Spending too much, even on a great business, is not a recipe for investment success.
Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.