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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed at $378.51 in the latest trading session, marking a +1.25% move from the prior day. This change outpaced the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the internet video service had lost 4.34% over the past month, lagging the Consumer Discretionary sector's loss of 2.83% and the S&P 500's gain of 3.76% in that time.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be April 19, 2022. On that day, Netflix is projected to report earnings of $2.89 per share, which would represent a year-over-year decline of 22.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.94 billion, up 10.86% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.88 per share and revenue of $33.41 billion. These results would represent year-over-year changes of -3.2% and +12.49%, respectively.
Any recent changes to analyst estimates for Netflix should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Netflix is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 34.36. This represents a premium compared to its industry's average Forward P/E of 10.18.
We can also see that NFLX currently has a PEG ratio of 1.38. 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 1.38 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 158, putting 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed at $378.51 in the latest trading session, marking a +1.25% move from the prior day. This change outpaced the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the internet video service had lost 4.34% over the past month, lagging the Consumer Discretionary sector's loss of 2.83% and the S&P 500's gain of 3.76% in that time.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be April 19, 2022. On that day, Netflix is projected to report earnings of $2.89 per share, which would represent a year-over-year decline of 22.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.94 billion, up 10.86% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.88 per share and revenue of $33.41 billion. These results would represent year-over-year changes of -3.2% and +12.49%, respectively.
Any recent changes to analyst estimates for Netflix should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Netflix is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 34.36. This represents a premium compared to its industry's average Forward P/E of 10.18.
We can also see that NFLX currently has a PEG ratio of 1.38. 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 1.38 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 158, putting 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.