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Netflix (NFLX) Gains But Lags Market: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $375.43, moving +0.22% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the internet video service had gained 11.28% over the past month, outpacing the Consumer Discretionary sector's gain of 7.24% and the S&P 500's gain of 7.86% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be July 17, 2019. The company is expected to report EPS of $0.57, down 32.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.93 billion, up 26.11% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $20.18 billion. These results would represent year-over-year changes of +24.63% and +27.78%, respectively.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 past month, the Zacks Consensus EPS estimate remained stagnant. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 112.02. This represents a premium compared to its industry's average Forward P/E of 15.91.
Also, we should mention that NFLX has a PEG ratio of 3.73. 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 1.2 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 145, putting it in the bottom 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Netflix (NFLX) Gains But Lags Market: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $375.43, moving +0.22% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the internet video service had gained 11.28% over the past month, outpacing the Consumer Discretionary sector's gain of 7.24% and the S&P 500's gain of 7.86% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be July 17, 2019. The company is expected to report EPS of $0.57, down 32.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.93 billion, up 26.11% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $20.18 billion. These results would represent year-over-year changes of +24.63% and +27.78%, respectively.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 past month, the Zacks Consensus EPS estimate remained stagnant. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 112.02. This represents a premium compared to its industry's average Forward P/E of 15.91.
Also, we should mention that NFLX has a PEG ratio of 3.73. 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 1.2 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 145, putting it in the bottom 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.