Netflix (NFLX) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Netflix (NFLX) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for Netflix suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10]. Recent Performance of Netflix - Analysts have raised their earnings estimates for Netflix, with the Zacks Consensus Estimate increasing by 2.9% over the past three months [8]. - For the fiscal year ending December 2025, Netflix is expected to earn $26.06 per share, reflecting no year-over-year change [8].