ZACKS·2025-10-22 23:01Core Insights - Discussion around buying the post-earnings dip in GE Aerospace and Netflix shares after their Q3 reports is gaining traction, especially given their impressive stock gains of around +300% over the last three years [1] GE Aerospace - GE Aerospace's Q3 sales surged 26% to $11.3 billion from $8.94 billion year-over-year, driven by LEAP engine sales [2] - Earnings for GE Aerospace soared 44% to $1.66 per share, exceeding the Zacks EPS Consensus of $1.46 by 14% [2] - The company raised its full-year 2025 guidance, now expecting adjusted EPS between $6.00-$6.20, up from a previous forecast of $5.90, and projecting mid-teens revenue growth [4] Netflix - Netflix's Q3 sales increased 17% to $11.51 billion from $9.82 billion year-over-year, but slightly missed estimates of $11.52 billion [3] - The company faced a $400 million non-recurring tax expense due to a dispute in Brazil, resulting in Q3 EPS of $5.87, which was 15% below expectations of $6.89 [3] - Netflix raised its full-year revenue growth forecast to approximately 16% from a previous estimate of 14% and increased its operating margin forecast from 21% to 22% [4] Valuation Metrics - GE Aerospace and Netflix are trading at notable premiums to the broader market, with forward P/E ratios of 52X and 47X, respectively [6] - Netflix has a high cash flow per share ratio of 59X, while GE Aerospace's ratio of 8X is above the S&P 500 average of 6X [7] Market Sentiment - Both GE Aerospace and Netflix currently hold a Zacks Rank 3 (Hold), indicating a cautious outlook despite their strong performance and raised guidance [8] - The trend of earnings estimate revisions following their Q3 reports is expected to be positive, particularly for GE Aerospace [9]