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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $440.87, marking a +1.18% move from the previous day. This move outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the internet video service had gained 30.56% in the past month. In that same time, the Consumer Discretionary sector gained 4.16%, while the S&P 500 gained 6.1%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. The company is expected to report EPS of $2.81, down 12.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.24 billion, up 3.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.22 per share and revenue of $33.84 billion, which would represent changes of +12.76% and +7.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Netflix is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 38.84. For comparison, its industry has an average Forward P/E of 13.35, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.73. 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. NFLX's industry had an average PEG ratio of 1.56 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 218, putting it in the bottom 14% 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.
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
In the latest trading session, Netflix (NFLX - Free Report) closed at $440.87, marking a +1.18% move from the previous day. This move outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the internet video service had gained 30.56% in the past month. In that same time, the Consumer Discretionary sector gained 4.16%, while the S&P 500 gained 6.1%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. The company is expected to report EPS of $2.81, down 12.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.24 billion, up 3.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.22 per share and revenue of $33.84 billion, which would represent changes of +12.76% and +7.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Netflix is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 38.84. For comparison, its industry has an average Forward P/E of 13.35, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.73. 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. NFLX's industry had an average PEG ratio of 1.56 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 218, putting it in the bottom 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.