Some investors are beginning to worry that AI stocks might be overhyped and resemble the dot-com bubble from the late 1990s, which ultimately collapsed in the early 2000s. I, however, don’t completely agree that all AI stocks are overvalued or in a bubble. Still, it’s prudent for investors to be careful not to concentrate all their investments in one sector—like AI.
As a possible downturn in the market looms, I have a couple of suggestions for stocks to consider: Netflix and Casey’s General Store. Interestingly, many investors may not have Casey’s on their radar. Hopefully, I can bring some new attention to them. Both companies have shown steady long-term growth.
Netflix is, without a doubt, a leading player in the video streaming industry, attracting over 300 million subscribers worldwide with its wide array of TV shows, movies, and games. The company is also gearing up to expand its video podcast offerings in 2026, thanks to a recent partnership with Spotify announced in October.
On Friday, Netflix revealed a significant $72 billion acquisition of Warner Bros. Discovery, which includes popular franchises like Harry Potter and Superman, adding to its vast library of content. This acquisition is expected to finalize in 12 to 18 months, pending necessary approvals.
Regardless of the economic climate, people often look for ways to be entertained. For many, a Netflix subscription is more of a necessity than a luxury—perhaps more surprising when you consider that Netflix’s stock price actually rose by 70.7% during the Great Recession, while the S&P 500 dropped by 35.6%.
Netflix has been utilizing AI to enhance its services, but even if the demand for AI were to decline—though I think that’s unlikely—the company’s core business remains resilient. It’s not just another “AI stock” in the traditional sense.
In its third quarter, Netflix’s revenue climbed by 17% to $11.51 billion, with an 8.7% year-over-year increase in earnings per share (EPS)—even accounting for some ongoing costs related to disputes with Brazilian tax authorities. Their free cash flow also grew by 21%, reaching $2.66 billion, and consumer engagement remains robust, achieving a record viewing share in both the US and UK.
For the fourth quarter, Netflix anticipates 17% revenue growth and an impressive 28% EPS growth compared to last year.
Now shifting gears, in my neck of the woods, Wawa is the go-to for convenience stores. Folks often say it’s a “goldmine.” On the other hand, Casey’s—while I haven’t personally visited—seems to be doing quite well based on their growth metrics. It’s exciting for investors, as Casey’s presents an opportunity to invest in a piece of what looks like a thriving business, unlike privately-held Wawa.
As the third-largest convenience store chain in the US, Casey’s has 2,895 locations across 19 states, focusing mainly on smaller communities. They have found a successful business model, and they offer a variety of products, including fresh food and, interestingly, pizza—which ranks them as the fifth largest pizza chain in America.
Casey’s emphasizes community involvement, including a popular loyalty program, which seems to resonate with customers. While the company doesn’t fit the mold of an AI company, it stands strong against market fluctuations. Their stock also offers a modest dividend yield of 0.4%, which, while small, can still be meaningful over time.
In the first quarter of fiscal 2026, Casey’s revenue grew by 11% to $4.57 billion, with healthy gross margins across its product lines. With net income rising by 20% year over year, it appears that Casey’s is well-positioned, especially given its impressive performance during the last economic downturn, where it only fell by 11.5%, compared to the S&P 500’s drop.
So before deciding on Netflix stock, just a few points to consider. Netflix wasn’t featured among the “Best 10 Stocks” identified by analysts, despite the impressive returns certain stocks have generated. Overall, these more traditional investment avenues might hold more promise for investors looking for steadiness without the volatility of hyped sectors like AI.
