Zacks Equity Research
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Chicago, 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.
On 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.
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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.
The 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.
Netflix
Netflix 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.
