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Netflix (NFLX) Gains As Market Dips: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $654.62, marking a +0.87% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.74% for the day. Elsewhere, the Dow saw a downswing of 1.06%, while the tech-heavy Nasdaq depreciated by 0.58%.
The the stock of internet video service has risen by 17.86% in the past month, leading the Consumer Discretionary sector's gain of 0.73% and the S&P 500's gain of 4.27%.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company's earnings per share (EPS) are projected to be $4.70, reflecting a 42.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.53 billion, up 16.36% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.31 per share and revenue of $38.7 billion, which would represent changes of +52.2% and +14.75%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Netflix. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.03% increase. Right now, Netflix possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 35.44 right now. This expresses a premium compared to the average Forward P/E of 8.44 of its industry.
It's also important to note that NFLX currently trades at a PEG ratio of 1.4. 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 0.9.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Gains As Market Dips: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $654.62, marking a +0.87% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.74% for the day. Elsewhere, the Dow saw a downswing of 1.06%, while the tech-heavy Nasdaq depreciated by 0.58%.
The the stock of internet video service has risen by 17.86% in the past month, leading the Consumer Discretionary sector's gain of 0.73% and the S&P 500's gain of 4.27%.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company's earnings per share (EPS) are projected to be $4.70, reflecting a 42.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.53 billion, up 16.36% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.31 per share and revenue of $38.7 billion, which would represent changes of +52.2% and +14.75%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Netflix. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.03% increase. Right now, Netflix possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 35.44 right now. This expresses a premium compared to the average Forward P/E of 8.44 of its industry.
It's also important to note that NFLX currently trades at a PEG ratio of 1.4. 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 0.9.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.