A Legacy of Growth

Netflix, once a humble DVD rental provider, has morphed into a titan in the streaming industry. With positive earnings estimate revisions and a prestigious Zacks Rank #1 (Strong Buy), the company has captured the attention of investors.

Financial Performance

Netflix recently reported robust numbers, boasting $2.1 billion in free cash flow and an impressive year-to-date operating margin of 28.1% (up from 20.6% in FY23). The company’s outlook remains optimistic, maintaining a $6 billion free cash flow projection for FY24 and engaging in significant share repurchases.

The company’s sales surged 14% year-over-year, with EPS skyrocketing by 80%. Despite initial post-earnings fluctuations, the stock has rebounded, marking a 7% gain over the past three months.

Growth Potential

Looking ahead, Netflix’s growth trajectory appears promising, with consensus estimates forecasting a 52% EPS increase and 15% higher sales for the current fiscal year. Projections for FY25 suggest a 20% earnings surge on a 12% sales uptick, accentuating the company’s ‘A’ Style Score for Growth.

Noteworthy initiatives, such as cracking down on password-sharing and introducing ad-supported tiers, have fueled robust membership expansion. Netflix’s latest subscriber count stands at an impressive 269.6 million, reflecting a remarkable 16% year-over-year growth.

The Zacks Advantage

For investors seeking winning opportunities, leveraging the power of the Zacks Rank represents a strategic advantage. Stocks designated with a Zacks Rank #1 (Strong Buy) typically outperform the market, making Netflix an enticing prospect.

Netflix’s stellar performance and growth prospects underscore its standing as a Zacks Rank #1 (Strong Buy) stock.