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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know

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Netflix (NFLX - Free Report) closed at $629.76 in the latest trading session, marking a +0.77% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%.

Heading into today, shares of the internet video service had gained 8.17% over the past month, outpacing the Consumer Discretionary sector's loss of 5.34% and the S&P 500's loss of 2.37% in that time.

Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. This is expected to be October 19, 2021. In that report, analysts expect NFLX to post earnings of $2.56 per share. This would mark year-over-year growth of 47.13%. Our most recent consensus estimate is calling for quarterly revenue of $7.48 billion, up 16.3% from the year-ago period.

NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.39 per share and revenue of $29.69 billion. These results would represent year-over-year changes of +70.89% and +18.79%, respectively.

Any recent changes to analyst estimates for NFLX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. NFLX is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 60.13 right now. Its industry sports an average Forward P/E of 15.2, so we one might conclude that NFLX is trading at a premium comparatively.

Meanwhile, NFLX's PEG ratio is currently 1.96. 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 1.45 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 58, putting it in the top 23% 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.


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