Netflix Inc. (NFLX: NSD) is set to release its Q4 earnings on January 23rd, 2024. Investors and analysts are anxiously awaiting to see if the streaming giant can recover from a turbulent year that saw subscriber losses and stock price drops.
Stock Target Advisor’s Analysis on Netflix:
Based on an extensive review of the Netflix (NFLX: NSD) stock, the consensus recommendation is to ‘Buy’. The proposed target price rests at $443.79, reflecting a projected price change of -8.11% within the coming 12 months. However, the average analyst target price interestingly outstrips at $463.76, revealing moderate bullish optimism within the financial community.
Netflix’s stock’s recent performance has registered a –9.21 % over the past week and -8.66% over the past month, whereas the stock flourished by +41.01% in the last year. Thus, the slight bullish analysis is then justified with 9 positive signals opposing 5 negative signals.
Netflix has a handsome amount of coverage from 25 analysts, collectively projecting a ‘Buy’ rating. The respective target prices given by different analysts in the market range from the highest of $585 and plunge to the lowest of $293 with the average analyst target price settling comfortably at $463.76.
Netflix: An Overview of Financial Performance
When compared to trailing 12-month returns, Netflix‘s stock (NFLX: NSD) has gained a substantial capital gain of 41.01%, situating it in the 94.74th percentile in its sector. Moreover, the company’s efficient management strategy has spearheaded remarkable 5-year growth with an impressive 170.39% increase in revenue and an astounding 703.67% in earnings.
Netflix’s profitability ratios evidence strong performance too, exceeding sector standards for Return on Assets (RoA), Return on Equity (RoE), and Return on Invested Capital (RoIC). On the valuation ratio front, we find P/E Ratio at 46.53, P/B Ratio at 9.22, and P/CF Ratio standing at 100.63.
Conclusion:
Netflix’s (NFLX: NSD) Q4 earnings call marks a significant turning point for the company following a year of tribulations. However, its financial performance has been impressive over the past five years, with solid growth in revenue and earnings.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
