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Zacks Investment Ideas feature highlights: Netflix and Disney
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For Immediate Release
Chicago, IL – July 17, 2024 – Today, Zacks Investment Ideas feature highlights Netflix (NFLX - Free Report) and Disney (DIS - Free Report) .
Time to Buy Netflix's (NFLX - Free Report) Growth Ahead of Q2 Earnings
Netflix shares have climbed +34% this year and the rally may continue with the streaming giant expected to post substantial growth when it reports its Q2 results on Thursday, July 18.
Holding on to the title of streaming king ahead of Disney, let’s dive into why now is a good time to buy Netflix stock.
Compelling Subscriber Growth
Netflix currently has over 270 million paid subscribers staying firmly ahead of Disney which has roughly 150 million customers in its subscriber base when including Disney+, ESPN+, Hotstar, and Hulu.
For the second quarter, Netflix is thought to have added 5.41 million subscribers, a slight decrease from the 5.89 million additions in the same period last year. However, it's noteworthy that Netflix added 9.32 million subscribers during Q1 which blasted expectations of 5.73 million (Surprise of 3.59 million) and climbed from 1.75 million additions in the comparative quarter.
Q2 Financial Expectations
Taking advantage of its subscriber growth, Netflix’s Q2 sales are projected to rise 16% to $9.53 billion. Even better, earnings are expected to soar 43% to $4.70 per share versus $3.29 a share in Q2 2023.
Notably, Netflix has exceeded earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 9.26%.
Monitoring Netflix’s P/E Valuation
Correlating with its expansion, Netflix shares have become more reasonably valued trading at 35.8X forward earnings compared to its five-year high of 108.3X while offering a slight discount to the median of 40.6X.
Bottom Line
Considering its more reasonable P/E valuation now looks like an advantageous time to invest in Netflix’s monstrous growth. Furthermore, NFLX tends to spike when Netflix beats earnings expectations but would be a viable buy-the-dip candidate on a selloff as an intriguing investment for 2024 and beyond.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Netflix and Disney
For Immediate Release
Chicago, IL – July 17, 2024 – Today, Zacks Investment Ideas feature highlights Netflix (NFLX - Free Report) and Disney (DIS - Free Report) .
Time to Buy Netflix's (NFLX - Free Report) Growth Ahead of Q2 Earnings
Netflix shares have climbed +34% this year and the rally may continue with the streaming giant expected to post substantial growth when it reports its Q2 results on Thursday, July 18.
Holding on to the title of streaming king ahead of Disney, let’s dive into why now is a good time to buy Netflix stock.
Compelling Subscriber Growth
Netflix currently has over 270 million paid subscribers staying firmly ahead of Disney which has roughly 150 million customers in its subscriber base when including Disney+, ESPN+, Hotstar, and Hulu.
For the second quarter, Netflix is thought to have added 5.41 million subscribers, a slight decrease from the 5.89 million additions in the same period last year. However, it's noteworthy that Netflix added 9.32 million subscribers during Q1 which blasted expectations of 5.73 million (Surprise of 3.59 million) and climbed from 1.75 million additions in the comparative quarter.
Q2 Financial Expectations
Taking advantage of its subscriber growth, Netflix’s Q2 sales are projected to rise 16% to $9.53 billion. Even better, earnings are expected to soar 43% to $4.70 per share versus $3.29 a share in Q2 2023.
Notably, Netflix has exceeded earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 9.26%.
Monitoring Netflix’s P/E Valuation
Correlating with its expansion, Netflix shares have become more reasonably valued trading at 35.8X forward earnings compared to its five-year high of 108.3X while offering a slight discount to the median of 40.6X.
Bottom Line
Considering its more reasonable P/E valuation now looks like an advantageous time to invest in Netflix’s monstrous growth. Furthermore, NFLX tends to spike when Netflix beats earnings expectations but would be a viable buy-the-dip candidate on a selloff as an intriguing investment for 2024 and beyond.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.