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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
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Netflix (NFLX - Free Report) ended the recent trading session at $479.56, demonstrating a +0.33% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.11%.
Heading into today, shares of the internet video service had gained 18.45% over the past month, outpacing the Consumer Discretionary sector's gain of 8.42% and the S&P 500's gain of 8.22% in that time.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. The company is forecasted to report an EPS of $2.18, showcasing a 1716.67% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.7 billion, indicating a 10.86% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.07 per share and revenue of $33.6 billion, indicating changes of +21.31% and +6.26%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. Netflix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 39.6. This denotes a premium relative to the industry's average Forward P/E of 13.86.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.86. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 1.44 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
Netflix (NFLX - Free Report) ended the recent trading session at $479.56, demonstrating a +0.33% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.11%.
Heading into today, shares of the internet video service had gained 18.45% over the past month, outpacing the Consumer Discretionary sector's gain of 8.42% and the S&P 500's gain of 8.22% in that time.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. The company is forecasted to report an EPS of $2.18, showcasing a 1716.67% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.7 billion, indicating a 10.86% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.07 per share and revenue of $33.6 billion, indicating changes of +21.31% and +6.26%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. Netflix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 39.6. This denotes a premium relative to the industry's average Forward P/E of 13.86.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.86. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 1.44 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.