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Why Netflix (NFLX) Could Be Positioned for a Surge?

Netflix, Inc. NFLX is a Broadcast Radio and Television company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on NFLX's earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Netflix could be a solid choice for investors.

Current Quarter Estimates for NFLX

In the past 30 days, 9 estimates have gone higher for Netflix while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from earnings of 19 cents a share 30 days ago, to earnings of 27 cents, a significant move.

Current Year Estimates for NFLX

Netflix, Inc. Price and EPS Surprise

Netflix, Inc. Price and EPS Surprise | Netflix, Inc. Quote

Meanwhile, Netflix's current year figures are also looking quite promising, with 11 estimates moving higher in the past month, compared to 2 lower. The consensus estimate trend has also seen a boost for this time frame, increasing from earnings of 98 cents per share 30 days ago to earnings of $1.07 per share today, a significant move.

Bottom Line

The stock has also started to move higher lately, adding 12.1% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

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