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Netflix (NFLX) Gains As Market Dips: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $598.72, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 0.77% loss on the day.
Prior to today's trading, shares of the internet video service had gained 17% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.35% and the S&P 500's gain of 1.55% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release. The company is expected to report EPS of $2.57, up 47.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, up 16.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.38 per share and revenue of $29.68 billion, which would represent changes of +70.72% and +18.74%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.02% higher within the past month. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 57.58. This represents a premium compared to its industry's average Forward P/E of 15.64.
It is also worth noting that NFLX currently has a PEG ratio of 1.88. 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. NFLX's industry had an average PEG ratio of 1.22 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Netflix (NFLX) Gains As Market Dips: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $598.72, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 0.77% loss on the day.
Prior to today's trading, shares of the internet video service had gained 17% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.35% and the S&P 500's gain of 1.55% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release. The company is expected to report EPS of $2.57, up 47.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, up 16.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.38 per share and revenue of $29.68 billion, which would represent changes of +70.72% and +18.74%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.02% higher within the past month. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 57.58. This represents a premium compared to its industry's average Forward P/E of 15.64.
It is also worth noting that NFLX currently has a PEG ratio of 1.88. 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. NFLX's industry had an average PEG ratio of 1.22 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.