Netflix (NFLX) is a Top-Ranked Growth Stock: Should You Buy?

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

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 second quarter of 2024, the company had 277.65 million paid subscribers globally.

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NFLX is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 27.7% year-over-year for the current fiscal year, with sales growth of 14%.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0 to $25.33 per share. NFLX boasts an average earnings surprise of 6.9%.

On a historic basis, Netflix has generated cash flow growth of 16.8%, and is expected to report cash flow expansion of 21.9% this year.

NFLX should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

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Netflix, Inc. (NFLX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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