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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 $639.10, moving +0.68% from the previous trading session. This change outpaced the S&P 500's 0.41% gain on the day.
Heading into today, shares of the internet video service had gained 4.63% over the past month, outpacing the Consumer Discretionary sector's loss of 4.84% and the S&P 500's loss of 4.08% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2021. 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 16.25% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.40 per share and revenue of $29.69 billion. These results would represent year-over-year changes of +71.05% and +18.76%, respectively.
Investors might also notice recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.23% higher within the past month. NFLX currently has a Zacks Rank of #3 (Hold).
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 61.03. For comparison, its industry has an average Forward P/E of 16.87, which means NFLX is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.99. 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 1.48 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 $639.10, moving +0.68% from the previous trading session. This change outpaced the S&P 500's 0.41% gain on the day.
Heading into today, shares of the internet video service had gained 4.63% over the past month, outpacing the Consumer Discretionary sector's loss of 4.84% and the S&P 500's loss of 4.08% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2021. 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 16.25% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.40 per share and revenue of $29.69 billion. These results would represent year-over-year changes of +71.05% and +18.76%, respectively.
Investors might also notice recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.23% higher within the past month. NFLX currently has a Zacks Rank of #3 (Hold).
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 61.03. For comparison, its industry has an average Forward P/E of 16.87, which means NFLX is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.99. 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 1.48 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.