Netflix is the IBD Stock Of The Day as the streaming video leader rides strong sales and earnings growth. Netflix stock also is flirting with a buy zone.
On Aug. 20, Netflix stock hit a buy point of 697.49 out of a cup base, according to IBD MarketSurge. However, Netflix retreated modestly from the 5% buy zone over the next four trading sessions. It returned to the buy zone on Tuesday, but ended the regular session just below it.
On the stock market today, Netflix stock dropped 1.7% to close at 683.84.
If Netflix stock returns to the buy zone soon, investors could use its recent high of 711.33 as an additional buy point, according to IBD analysis.
Netflix notched that record high after the company announced that its upfront advertising commitments had more than doubled this year.
Further, the Los Gatos, Calif.-based company has posted four straight quarters of accelerating revenue growth.
Netflix Stock Gets Price-Target Hike
In a note to clients Tuesday, Evercore ISI analyst Mark Mahaney raised his price target on Netflix stock to 750 from 710 and kept his outperform rating.
"Netflix's competitive position remains as strong or stronger than ever," Mahaney said.
He cited his firm's survey of consumers in the U.S. and Mexico. The survey data showed Netflix with high satisfaction ratings relative to the competition. Its rivals include Walt Disney's Disney+ and Hulu, Warner Bros. Discovery's Max and Amazon's Amazon Prime Video.
Survey respondents also picked Netflix as having the best content, he said. Recent popular content on Netflix includes action-comedy movie "The Union" and season four of comedy-drama series "Emily In Paris."
Netflix stock ranks first out of 20 stocks in IBD's Leisure-Movies & Related industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 98 out of 99.
Netflix stock is on two IBD lists: the IBD 50 and SwingTrader.
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