Netflix(US:NFLX) ZACKSยท2025-07-15 17:46Core Viewpoint - Investors are increasingly seeking growth stocks, particularly in the financial sector, to achieve above-average returns, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system simplifies the identification of promising growth stocks by analyzing a company's actual growth potential beyond traditional metrics [2] - Netflix (NFLX) is highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong future prospects [3] - Netflix's historical EPS growth rate stands at 23.9%, with projected EPS growth of 28.2% this year, significantly outperforming the industry average of -4.2% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - Netflix's year-over-year cash flow growth is 21.9%, compared to an industry average of -25.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 16.8%, against the industry average of 4.2% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [7] - The current-year earnings estimates for Netflix have been revised upward, with a 0.4% increase in the Zacks Consensus Estimate over the past month [7] Group 5: Overall Assessment - Netflix has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [9]