Next week on the stock market

Netflix has been able to demonstrate its qualities as a recession and tariff resilient business, right at a time when those two traits are highly sought after. Add in strong fundamentals plus good execution, and it’s not too surprising to see Netflix flirting with all-time highs as we look ahead to second quarter results next week.

Netflix doesn’t release subscriber growth numbers anymore, so we’ll have to make do with some traditional metrics. Operating margins will be in focus, with improvements in the last quarter expected to repeat next week as 33% has been touted as the target number. Things are expected to dip in the second half as content spend ramps up but there’s scope for full year expectations to move higher if a solid margin number gets printed next week.

easyJet will be looking to show markets it’s on the right flight path when it releases its third-quarter update next week. Underlying performance has been impressive recently, with all parts of the business contributing positively to topline growth. The package holiday arm is likely to remain the standout performer, and we expect to see it keep growing both revenue and profits at double-digit rates.

easyJet’s doing a great job of growing its fleet while keeping costs under control. But there had been some slight softness on pricing in the second quarter, so we’re keen to hear if that’s picked back up over the third quarter. The market seems fairly confident that this will be the case, and full-year pre-tax profit guidance of £703mn should be well within reach.

Barratt Redrow’s been ticking along nicely over the last year, despite some hurdles such as stamp duty changes and slow changes to increasing planning approvals. The integration of the Barratt and Redrow businesses has progressed well, and trimming the fat on overlapping operations is expected to bring around £100mn of cost savings. In next week’s full-year trading statement, we’re expecting to hear that the combined group delivered its guidance of building between 16,800-17,200 new homes last year.

Looking further ahead, industry data is largely positive with buyer activity remaining resilient and sales rates up by mid-single digits year-on-year. Profits across the sector are on the rise, and market forecasts point to that growth improving out until at least 2028. We’re keen to hear just how much of an uplift Barratt Redrow is expecting next year, and whether it sees the current weakness in the south of the country continuing for much longer.