Up Nearly 20% From Its 52-Week Low, Is Netflix Stock Set to Rally Even Higher?

When Netflix (NASDAQ: NFLX) reported earnings last month, investors weren't impressed. They dumped the stock, which was already struggling, causing it to hit a new 52-week low of $65.08. It seemed as though the company, despite its solid growth over the years, could do nothing to convince investors that it was worth investing in. Its tailspin seemed endless.

But with beaten-down stocks, at some point, they become too cheap to pass up. Investors load up on them at discounted prices, which can create a snowball effect, driving their share prices higher, leading to a rally. That appears to be happening with Netflix of late, as on Thursday, it was trading at around $77 -- which is 18% higher than the low it reached in July.