Netflix: Strong Performance and New Buy Point

Netflix (NFLX) has emerged as a notable pick from Tuesday's IBD 50 Stocks To Watch list, largely due to its remarkable 84% gain in 2024. This impressive performance positions Netflix stock as a key investment consideration at the moment.

The company has recently reported outstanding viewership figures for its NFL broadcasts and a special Beyoncé halftime show, which collectively attracted nearly 65 million viewers in the U.S., according to Nielsen's research.

On October 17, Netflix posted earnings of $5.40 per share on revenues of $9.83 billion for the September quarter. This surpassed analyst expectations, which had forecasted earnings of $5.12 per share on sales of $9.77 billion. Year-over-year, the company's earnings increased by 45%, while sales rose by 15%.

Throughout the third quarter, Netflix gained 5.1 million new subscribers, significantly exceeding the anticipated addition of 4 million. By the end of the quarter, Netflix had a total of 282.7 million subscribers globally, representing a 14% increase from the previous year.

Market projections suggest that Netflix's earnings will grow by 65% for the full year, with an additional 20% expected increase in 2025, according to IBD MarketSurge.

Netflix Stock's Potential Entry Point

After reaching an all-time high of 941.75 on December 11, Netflix's stock has shown consolidation over the past three weeks, establishing a three-weeks-tight add-on buy trigger at the same 941.75 price level.

Notably, the relative strength line is close to new highs, indicating strong performance compared to the S&P 500 and reaffirming Netflix's position as a market leader.

It’s important to note that the stock is in a late stage of its long-term upward trend, with the latest formation identified as a fourth-stage base, as recognized by IBD MarketSurge's pattern evaluation. Typically, early-stage bases are associated with larger potential gains.

According to IBD Stock Checkup, Netflix boasts an outstanding 99 IBD Composite Rating, making it an attractive option for those looking to build their watchlist.

Stocks Worth Monitoring

Additionally, three other recent IBD 50 Stocks To Watch selections continue to be worthy of research.

Company	Symbol	Buy Point	Type of Base
Shift4	(FOUR)	101.00	10-week Support
Arista Networks	(ANET)	116.94	Three-weeks-tight
Taiwan Semiconductor	(TSM)	205.63	Cup with Handle

Investors and analysts should consider these factors as they look at Netflix and other stocks for potential growth opportunities.

Netflix, Stocks, Earnings