The Zacks Analyst Blog Highlights Netflix, Disney, Charter Communications, Roku and Roblox

For Immediate ReleaseChicago, IL – May 29, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix Inc. NFLX, The Walt Disney Co. DIS, Charter Communications Inc. CHTR, Roku Inc. ROKU and Roblox Corp. RBLX.Here are highlights from Wednesday’s Analyst Blog:Pick 5 Buyer-Focused Stocks as Consumer Confidence Rebounds in MayOn May 27, the Conference Board reported that the U.S. Consumer Confidence Index has rebounded this month after five consecutive months of decline. The final reading for May came in at 98, significantly above the Zacks Consensus Estimate of 86. The metric for April was revised marginally downward to 85.7 from 86 reported earlier.May’s consumer optimism was primarily driven by expectations of a U.S.-China trade deal, the delay by the Trump administration to impose 50% tariffs on the European Union and the ongoing negotiations related to tariff and trade policies with several other major trading partners of the United States.At this stage, investment in consumer discretionary stocks should be fruitful. Five such stocks with a favorable Zacks Rank are: Netflix Inc., The Walt Disney Co., Charter Communications Inc., Roku Inc. and Roblox Corp. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Consumer Confidence Index NorthboundThe Present Situation Index—based on consumers’ assessment of current business and labor market conditions — rose to 135.9 in May from 131.1 in April. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — climbed to 72.8 in May from 55.4 in April. However, this sub-index remained below the threshold of 80, which typically signals a recession ahead.In May, 44% of respondents expect stocks to be higher over the next 12 months, compared with 37.6% in April. With respect to the labor market, 19.2% of respondents expect more jobs to be available in the next six months compared with 13.9% in April.NetflixNetflix handsomely beat the Zacks Consensus Estimate for bottom line while the top line was mostly in line with the consensus mark in first-quarter 2025. Despite trade and tariff-related doldrums, NFLX seems to have maintained healthy engagement levels. NFLX reaffirmed its 2025 guidance irrespective of the possibility of a near-term recession.On April 1, Netflix launched its Ad Suite in the United States. NFLX will ramp up this Ad Suite in international markets in the ensuing second quarter. The ad-supported offerings will enable management to witness impressive subscribers and ARPU (average revenue per user) growth.Netflix’s policies of offering an ad-supported lower-priced tier, abolishing password sharing and effective price increase, should help it to become a defensive play ahead of a possible economic downturn.Furthermore, Netflix uses artificial intelligence (AI), data science and machine language extensively to provide consumers with more appropriate and intuitive suggestions. Netflix's AI platform takes into account an individual’s viewing habits and hobbies and accordingly provides recommendations.NFLX’s AI model compiles subscriber information and recommends content based on their preferences, which can be customized by end users. AI applications enable NFLX to offer a high-quality streaming service at reduced bandwidths.Netflix has an expected revenue and earnings growth rate of 14% and 27.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 60 days.Walt DisneyThe Walt Disney Co. reported steady second-quarter fiscal 2025 results wherein revenues and earnings increased year-over-year. Domestic Parks & Experiences saw growth at domestic parks, Disney Vacation Club and Disney Cruise Line, partially offset by the decline at international locations including Shanghai Disney Resort and Hong Kong Disneyland Resort.In Entertainment, DIS expects double-digit percentage operating income growth in fiscal 2025. ESPN continues to reinforce its position as a sports-dominant platform, with the second quarter delivering its most-watched primetime ever and 32% viewership growth in the key 18-49 demographic.DIS has successfully transformed its streaming business from a loss-leader to a profitable growth engine. After reporting its first-ever Direct-to-Consumer (DTC) operating profit in fiscal year 2024, the momentum has accelerated in fiscal year 2025 with second-quarter DTC operating income reaching $336 million.The Walt Disney Co. has an expected revenue and earnings growth rate of 3.8% and 15.1%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 4.6% in the last 30 days.Charter CommunicationsCharter Communications’ first-quarter performance benefited from continued growth in mobile service revenues, which surged 33.5% year over year, adding 514K new mobile lines. CHTR’s Internet revenues grew 1.8%, driven by promotional rate step-ups and rate adjustments.Spectrum Mobile’s competitive pricing & expanded 5G coverage remain the key growth drivers. In March 2025, Spectrum Mobile launched satellite-based services through a collaboration with Skylo, a non-terrestrial network service provider.CHTR’s Spectrum One continues to win market share with its differentiated offerings like Mobile Speed Boost and Spectrum Mobile Network, each of which runs on its advanced Spectrum WiFi. Spectrum WiFi provides unlimited Internet access to residential customers even when they are outdoors. It will also help CHTR fend off competition.Charter Communications has an expected revenue and earnings growth rate of 0.3% and 13.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.1% in the last 30 days.RokuRoku benefits from increased user engagement on The Roku Channel and the popularity of the Roku TV program. The Roku OS is the #1 selling TV OS in the United States, with TV unit sales greater than the next two TV operating systems combined.The Roku Channel reached U.S. households with approximately 145 million people and remained the #3 app on its platform by both reach and engagement, with streaming hours up 82% year over year.More than 80% of streaming hours on The Roku Channel originates from the Roku Experience. Roku continued to expand penetration in the United States, surpassing half of the broadband households.Roku has an expected revenue and earnings growth rate of 10.5% and 80.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 39.3% in the last 30 days.RobloxRoblox develops and operates an online entertainment platform. RBLX offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that allows developers and creators to build, publish and operate 3D experiences and other content. RBLX also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform.Roblox has an expected revenue and earnings growth rate of 22.5% and 2.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% in the last 30 days.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Report The Walt Disney Company (DIS): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report Roblox Corporation (RBLX): 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