We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Netflix (NFLX - Free Report) closed the most recent trading day at $533.50, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.03% gain on the day.
Heading into today, shares of the internet video service had gained 6.01% over the past month, lagging the Consumer Discretionary sector's gain of 10.71% and outpacing the S&P 500's gain of 2.12% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be July 20, 2021. On that day, NFLX is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 101.26%. Meanwhile, our latest consensus estimate is calling for revenue of $7.31 billion, up 18.88% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.43 per share and revenue of $29.7 billion. These results would represent year-over-year changes of +71.55% and +18.84%, 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. NFLX is currently a Zacks Rank #2 (Buy).
Digging into valuation, NFLX currently has a Forward P/E ratio of 51.13. Its industry sports an average Forward P/E of 14.73, so we one might conclude that NFLX is trading at a premium comparatively.
Also, we should mention that NFLX has a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NFLX's industry had an average PEG ratio of 1.52 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 90, putting it in the top 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $533.50, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.03% gain on the day.
Heading into today, shares of the internet video service had gained 6.01% over the past month, lagging the Consumer Discretionary sector's gain of 10.71% and outpacing the S&P 500's gain of 2.12% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be July 20, 2021. On that day, NFLX is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 101.26%. Meanwhile, our latest consensus estimate is calling for revenue of $7.31 billion, up 18.88% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.43 per share and revenue of $29.7 billion. These results would represent year-over-year changes of +71.55% and +18.84%, 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. NFLX is currently a Zacks Rank #2 (Buy).
Digging into valuation, NFLX currently has a Forward P/E ratio of 51.13. Its industry sports an average Forward P/E of 14.73, so we one might conclude that NFLX is trading at a premium comparatively.
Also, we should mention that NFLX has a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NFLX's industry had an average PEG ratio of 1.52 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 90, putting it in the top 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.