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Bull of the Day: NetEase (NTES)

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NetEase (NTES - Free Report) is an Internet technology company that develops applications, services, and other technologies for the Internet in China. Analysts have been notably bullish concerning its EPS outlook, raising expectations across the board in a big way over recent months.

The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at how the company presently stacks up.

NetEase Sees Big Growth

NetEase’s quarterly results have been strong over recent periods, enjoying 7% revenue growth year-over-year throughout its latest period.

The stock’s success and favorable outlook have been driven by mega-popular games such as Marvel Rivals, which topped Steam's global top sellers chart shortly after its Season 2 update back in April.

Below is a chart illustrating the company’s sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s growth outlook also remains constructive, with current Zacks Consensus estimates suggesting 19% EPS growth on nearly 10% higher sales in its current fiscal year. The stock sports a Style Score of ‘A’ for Growth.

While the revisions trend has been overall negative over the past year, it’s changed course in a big way as of late following favorable quarterly results, as shown below. Analysts started taking their sales expectations higher at the beginning of 2025, not looking back since.

Zacks Investment Research
Image Source: Zacks Investment Research

Following its latest release, CEO William Ding stated –

"We entered 2025 with solid momentum, fueled by our ongoing innovation and new titles that strengthen our reach across genres and resonate with players around the world.”

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

NetEase (NTES - Free Report) is currently a Zack Rank #1 (Strong Buy). 


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