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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 $320.34, moving +1.64% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the internet video service had gained 5.32% in the past month. In that same time, the Consumer Discretionary sector gained 1.28%, while the S&P 500 gained 0.09%.
Netflix will be looking to display strength as it nears its next earnings release. On that day, Netflix is projected to report earnings of $0.44 per share, which would represent a year-over-year decline of 66.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.84 billion, up 1.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.30 per share and revenue of $31.6 billion, which would represent changes of -8.36% and +6.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Netflix currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 30.6. For comparison, its industry has an average Forward P/E of 7.2, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 3.59. 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. NFLX's industry had an average PEG ratio of 0.71 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 221, putting it in the bottom 13% 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.
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) Outpaces Stock Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $320.34, moving +1.64% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the internet video service had gained 5.32% in the past month. In that same time, the Consumer Discretionary sector gained 1.28%, while the S&P 500 gained 0.09%.
Netflix will be looking to display strength as it nears its next earnings release. On that day, Netflix is projected to report earnings of $0.44 per share, which would represent a year-over-year decline of 66.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.84 billion, up 1.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.30 per share and revenue of $31.6 billion, which would represent changes of -8.36% and +6.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Netflix currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 30.6. For comparison, its industry has an average Forward P/E of 7.2, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 3.59. 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. NFLX's industry had an average PEG ratio of 0.71 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 221, putting it in the bottom 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.