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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $554.58, moving +1.39% from the previous trading session. This change outpaced the S&P 500's 0.42% gain on the day.
Prior to today's trading, shares of the internet video service had gained 7.52% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.89% and the S&P 500's gain of 6.32% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be April 20, 2021. The company is expected to report EPS of $2.98, up 89.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.14 billion, up 23.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.80 per share and revenue of $29.91 billion. These totals would mark changes of +61.18% and +19.65%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. NFLX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 55.57. For comparison, its industry has an average Forward P/E of 16.22, which means NFLX is trading at a premium to the group.
We can also see that NFLX currently has a PEG ratio of 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $554.58, moving +1.39% from the previous trading session. This change outpaced the S&P 500's 0.42% gain on the day.
Prior to today's trading, shares of the internet video service had gained 7.52% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.89% and the S&P 500's gain of 6.32% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be April 20, 2021. The company is expected to report EPS of $2.98, up 89.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.14 billion, up 23.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.80 per share and revenue of $29.91 billion. These totals would mark changes of +61.18% and +19.65%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. NFLX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 55.57. For comparison, its industry has an average Forward P/E of 16.22, which means NFLX is trading at a premium to the group.
We can also see that NFLX currently has a PEG ratio of 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.