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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 $443.86, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 11.47%.
Heading into today, shares of the internet video service had gained 1.03% over the past month, lagging the Consumer Discretionary sector's gain of 1.26% and the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be July 19, 2023. On that day, Netflix is projected to report earnings of $2.81 per share, which would represent a year-over-year decline of 12.19%. Our most recent consensus estimate is calling for quarterly revenue of $8.26 billion, up 3.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.26 per share and revenue of $33.91 billion, which would represent changes of +13.17% and +7.27%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-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. 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.
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. The Zacks Consensus EPS estimate has moved 0.79% higher within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 39.11. Its industry sports an average Forward P/E of 13.88, so we one might conclude that Netflix is trading at a premium comparatively.
Investors should also note that NFLX has a PEG ratio of 1.64 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NFLX's industry had an average PEG ratio of 1.49 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 191, putting it in the bottom 25% 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
In the latest trading session, Netflix (NFLX - Free Report) closed at $443.86, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 11.47%.
Heading into today, shares of the internet video service had gained 1.03% over the past month, lagging the Consumer Discretionary sector's gain of 1.26% and the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be July 19, 2023. On that day, Netflix is projected to report earnings of $2.81 per share, which would represent a year-over-year decline of 12.19%. Our most recent consensus estimate is calling for quarterly revenue of $8.26 billion, up 3.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.26 per share and revenue of $33.91 billion, which would represent changes of +13.17% and +7.27%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-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. 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.
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. The Zacks Consensus EPS estimate has moved 0.79% higher within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 39.11. Its industry sports an average Forward P/E of 13.88, so we one might conclude that Netflix is trading at a premium comparatively.
Investors should also note that NFLX has a PEG ratio of 1.64 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NFLX's industry had an average PEG ratio of 1.49 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 191, putting it in the bottom 25% 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.