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Netflix (NFLX) Gains But Lags Market: What You Should Know
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In the latest market close, Netflix (NFLX - Free Report) reached $709.27, with a +0.27% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Coming into today, shares of the internet video service had gained 0.86% in the past month. In that same time, the Consumer Discretionary sector gained 4.24%, while the S&P 500 gained 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on October 17, 2024. The company is expected to report EPS of $5.07, up 35.92% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.76 billion, indicating a 14.31% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.08 per share and a revenue of $38.68 billion, representing changes of +58.6% and +14.71%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Netflix holds a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 37.06. This valuation marks a premium compared to its industry's average Forward P/E of 9.77.
Investors should also note that NFLX has a PEG ratio of 1.45 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.88 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 28% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Netflix (NFLX) Gains But Lags Market: What You Should Know
In the latest market close, Netflix (NFLX - Free Report) reached $709.27, with a +0.27% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Coming into today, shares of the internet video service had gained 0.86% in the past month. In that same time, the Consumer Discretionary sector gained 4.24%, while the S&P 500 gained 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on October 17, 2024. The company is expected to report EPS of $5.07, up 35.92% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.76 billion, indicating a 14.31% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.08 per share and a revenue of $38.68 billion, representing changes of +58.6% and +14.71%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Netflix holds a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 37.06. This valuation marks a premium compared to its industry's average Forward P/E of 9.77.
Investors should also note that NFLX has a PEG ratio of 1.45 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.88 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 28% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.