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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed at $379.93 in the latest trading session, marking a +1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq added 0.54%.
Heading into today, shares of the internet video service had gained 6.86% over the past month, outpacing the Consumer Discretionary sector's gain of 3.65% and the S&P 500's gain of 3.68% 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 $0.56, down 34.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.93 billion, up 26.13% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.35 per share and revenue of $20.18 billion. These results would represent year-over-year changes of +25% and +27.78%, respectively.
Investors might also notice recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.02% higher. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 112.45. This represents a premium compared to its industry's average Forward P/E of 16.17.
Investors should also note that NFLX has a PEG ratio of 3.75 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed at $379.93 in the latest trading session, marking a +1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq added 0.54%.
Heading into today, shares of the internet video service had gained 6.86% over the past month, outpacing the Consumer Discretionary sector's gain of 3.65% and the S&P 500's gain of 3.68% 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 $0.56, down 34.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.93 billion, up 26.13% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.35 per share and revenue of $20.18 billion. These results would represent year-over-year changes of +25% and +27.78%, respectively.
Investors might also notice recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.02% higher. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 112.45. This represents a premium compared to its industry's average Forward P/E of 16.17.
Investors should also note that NFLX has a PEG ratio of 3.75 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.