Netflix, Inc. (NFLX) Hits Fresh High: Is There Still Room to Run?

Shares of Netflix (NFLX) have been strong performers lately, with the stock up 18% over the past month. The stock hit a new 52-week high of $1106.8 in the previous session. Netflix has gained 23.6% since the start of the year compared to the -4.8% move for the Zacks Consumer Discretionary sector and the 14.1% return for the Zacks Broadcast Radio and Television industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 17, 2025, Netflix reported EPS of $6.61 versus consensus estimate of $5.69 while it missed the consensus revenue estimate by 0.04%.For the current fiscal year, Netflix is expected to post earnings of $25.33 per share on $44.47 billion in revenues. This represents a 27.74% change in EPS on a 14.01% change in revenues. For the next fiscal year, the company is expected to earn $30.52 per share on $49.63 billion in revenues. This represents a year-over-year change of 20.51% and 11.62%, respectively.Valuation MetricsNetflix may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Netflix has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 43.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.4X. On a trailing cash flow basis, the stock currently trades at 19.4X versus its peer group's average of 2.4X. Additionally, the stock has a PEG ratio of 2.13. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Netflix currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Netflix passes the test. Thus, it seems as though Netflix shares could have potential in the weeks and months to come.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks