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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $304.21, moving +1.91% from the previous trading session. This change outpaced the S&P 500's 0.72% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.91%.
Coming into today, shares of the internet video service had gained 3.07% in the past month. In that same time, the Consumer Discretionary sector gained 3.38%, while the S&P 500 gained 2.64%.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. In that report, analysts expect NFLX to post earnings of $0.52 per share. This would mark year-over-year growth of 73.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.44 billion, up 29.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $20.13 billion, which would represent changes of +25% and +27.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. NFLX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 89.19. This represents a premium compared to its industry's average Forward P/E of 14.45.
Meanwhile, NFLX's PEG ratio is currently 2.97. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.59 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $304.21, moving +1.91% from the previous trading session. This change outpaced the S&P 500's 0.72% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.91%.
Coming into today, shares of the internet video service had gained 3.07% in the past month. In that same time, the Consumer Discretionary sector gained 3.38%, while the S&P 500 gained 2.64%.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. In that report, analysts expect NFLX to post earnings of $0.52 per share. This would mark year-over-year growth of 73.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.44 billion, up 29.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $20.13 billion, which would represent changes of +25% and +27.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. NFLX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 89.19. This represents a premium compared to its industry's average Forward P/E of 14.45.
Meanwhile, NFLX's PEG ratio is currently 2.97. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.59 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.