Netflix’s stock is trading slightly lower after a strong earnings report. Revenue increased 17% YoY to $9.37 billion, with operating margins expanding from 22% to 27%. Netflix dominates the streaming market, accounting for 40% of total TV time in the US. The company boasts a fair valuation with a one-year forward earnings multiple of 35.1x.

Despite a slight dip in stock price, Netflix’s impressive earnings report and growth prospects make it a compelling investment opportunity. With a Zacks Rank #2, the company’s expansion into live content and ad business offers even more growth potential. Investors looking for exposure to the streaming sector should consider adding Netflix to their portfolios.

Read more at Nasdaq: Zacks Investment Ideas feature highlights: Netflix Amazon, and Disney