Why Netflix (NFLX) is a Top Growth Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
Netflix (NFLX)
Netflix is considered a pioneer in the streaming space. The company evolved from a small DVD-rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and a fortified international footprint. At the end of the first quarter of 2024, the company had 269.6 million paid subscribers globally.
NFLX boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 52.2% year-over-year for 2024, while Wall Street anticipates its top line to improve by 14.9%.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.01 to $18.31 per share. NFLX boasts an average earnings surprise of 9.3%.
On a historic basis, Netflix has generated cash flow growth of 17.7%, and is expected to report cash flow expansion of 5.9% this year.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, NFLX should be on investors' short lists.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report