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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 $233.98, moving +1.9% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.41%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the internet video service had gained 1.26% over the past month, outpacing the Consumer Discretionary sector's gain of 0.51% and lagging the S&P 500's gain of 4.68% in that time.
Netflix will be looking to display strength as it nears its next earnings release. On that day, Netflix is projected to report earnings of $2.11 per share, which would represent a year-over-year decline of 33.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.85 billion, up 4.87% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.03 per share and revenue of $31.67 billion. These results would represent year-over-year changes of -10.77% and +6.63%, respectively.
Investors might also notice recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-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. 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.
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 0.32% lower. Netflix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 22.9. This valuation marks a premium compared to its industry's average Forward P/E of 8.94.
It is also worth noting that NFLX currently has a PEG ratio of 1.6. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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 the most recent trading day at $233.98, moving +1.9% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.41%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the internet video service had gained 1.26% over the past month, outpacing the Consumer Discretionary sector's gain of 0.51% and lagging the S&P 500's gain of 4.68% in that time.
Netflix will be looking to display strength as it nears its next earnings release. On that day, Netflix is projected to report earnings of $2.11 per share, which would represent a year-over-year decline of 33.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.85 billion, up 4.87% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.03 per share and revenue of $31.67 billion. These results would represent year-over-year changes of -10.77% and +6.63%, respectively.
Investors might also notice recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-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. 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.
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 0.32% lower. Netflix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 22.9. This valuation marks a premium compared to its industry's average Forward P/E of 8.94.
It is also worth noting that NFLX currently has a PEG ratio of 1.6. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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.