The headlines this year have been dominated by the “Magnificent
Seven.” Seven large cap growth stocks that have been rocketing the
market higher. Before the Mag 7, we had a different group of leaders
pushing the market higher. It was FANG. Among those names is today’s
Bull of the Day. It’s the company that appears to have won the
streaming wars.
Today’s Bull of the Day is Zacks Rank #1 (Strong Buy)
Netflix (NFLX). Netflix, Inc. provides entertainment services. It offers TV series,
documentaries, feature films, and games across various genres and
languages. The company also provides members the ability to receive
streaming content through a host of internet-connected devices, including
TVs, digital video players, TV set-top boxes, and mobile devices.
The company is coming off an impressive quarter with huge subscriber
growth. The company added 13 million subscribers last quarter, far
outpacing expectations. This big number has led eleven analysts to
increase their earnings estimates for the current year and nine to do
so for next year. The bullish move has increased our Zacks Consensus
Estimate for the current year from $15.86 to $16.85 while next year’s
number is up from $18.92 to $20.63.
That means that current year EPS growth is now slated to come in at
40%, with next year coming in at 22.41%. Those are some solid growth
numbers considering the stock is trading at 33.85x earnings. Compare
that to the broad market’s 20.71x earnings. Revenue growth is forecast
to come in at 14.27% this year and 11.53% next year.
Image Source: Zacks Investment Research
The Price, Consensus and EPS Surprise Chart highlights the strong
move off the early 2022 lows in earnings. Estimates turned around as
the stock bottomed out. Shares had dipped down to the high $100s.
Since then, it has been a steady slog higher. This latest earnings
report, although technically a miss on EPS, has led to a rally which
broke the stock out from $500, ticking up to $575 on January 29th.
5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain
+100% or more in 2023. Previous recommendations have soared +143.0%,
+175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar,
which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Netflix, Inc. (NFLX) : Free Stock Analysis Report
