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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 $610.27, marking a +1.87% move from the previous day. This change outpaced the S&P 500's 1.19% loss on the day.
Prior to today's trading, shares of the internet video service had gained 2.92% over the past month. This has outpaced the Consumer Discretionary sector's loss of 3.14% and the S&P 500's loss of 3.16% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be October 19, 2021. The company is expected to report EPS of $2.54, up 45.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, up 16.25% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.36 per share and revenue of $29.69 billion. These totals would mark changes of +70.39% and +18.76%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NFLX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. NFLX is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 57.83 right now. For comparison, its industry has an average Forward P/E of 16.12, which means NFLX is trading at a premium to the group.
It is also worth noting that NFLX currently has a PEG ratio of 1.89. 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 industry currently had an average PEG ratio of 1.44 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 159, putting it in the bottom 38% 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.
Be sure to follow all of these stock-moving metrics, and many 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 $610.27, marking a +1.87% move from the previous day. This change outpaced the S&P 500's 1.19% loss on the day.
Prior to today's trading, shares of the internet video service had gained 2.92% over the past month. This has outpaced the Consumer Discretionary sector's loss of 3.14% and the S&P 500's loss of 3.16% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be October 19, 2021. The company is expected to report EPS of $2.54, up 45.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, up 16.25% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.36 per share and revenue of $29.69 billion. These totals would mark changes of +70.39% and +18.76%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NFLX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. NFLX is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 57.83 right now. For comparison, its industry has an average Forward P/E of 16.12, which means NFLX is trading at a premium to the group.
It is also worth noting that NFLX currently has a PEG ratio of 1.89. 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 industry currently had an average PEG ratio of 1.44 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 159, putting it in the bottom 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.