We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Netflix (NFLX - Free Report) closed at $503.86, marking a +0.3% move from the previous day. This move outpaced the S&P 500's daily gain of 0.12%.
Prior to today's trading, shares of the internet video service had lost 0.82% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 0.97% and lagged the S&P 500's gain of 0.33% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. On that day, NFLX is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 98.11%. Our most recent consensus estimate is calling for quarterly revenue of $7.32 billion, up 19.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.44 per share and revenue of $29.72 billion, which would represent changes of +71.71% and +18.88%, respectively, from the prior 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.68% higher within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 48.12. This valuation marks a premium compared to its industry's average Forward P/E of 13.68.
It is also worth noting that NFLX currently has a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.3 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $503.86, marking a +0.3% move from the previous day. This move outpaced the S&P 500's daily gain of 0.12%.
Prior to today's trading, shares of the internet video service had lost 0.82% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 0.97% and lagged the S&P 500's gain of 0.33% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. On that day, NFLX is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 98.11%. Our most recent consensus estimate is calling for quarterly revenue of $7.32 billion, up 19.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.44 per share and revenue of $29.72 billion, which would represent changes of +71.71% and +18.88%, respectively, from the prior 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.68% higher within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 48.12. This valuation marks a premium compared to its industry's average Forward P/E of 13.68.
It is also worth noting that NFLX currently has a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.3 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.