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 at $243.63 in the latest trading session, marking a +1.46% move from the prior day. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.
Coming into today, shares of the internet video service had lost 0.43% in the past month. In that same time, the Consumer Discretionary sector lost 11.32%, while the S&P 500 lost 9.94%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be October 18, 2022. The company is expected to report EPS of $2.12, down 33.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.86 billion, up 5.02% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $31.68 billion. These results would represent year-over-year changes of -10.68% and +6.68%, respectively.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Netflix is currently a Zacks Rank #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 23.91. This valuation marks a premium compared to its industry's average Forward P/E of 9.13.
It is also worth noting that NFLX currently has a PEG ratio of 1.67. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.98 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.
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 at $243.63 in the latest trading session, marking a +1.46% move from the prior day. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.
Coming into today, shares of the internet video service had lost 0.43% in the past month. In that same time, the Consumer Discretionary sector lost 11.32%, while the S&P 500 lost 9.94%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be October 18, 2022. The company is expected to report EPS of $2.12, down 33.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.86 billion, up 5.02% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $31.68 billion. These results would represent year-over-year changes of -10.68% and +6.68%, respectively.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Netflix is currently a Zacks Rank #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 23.91. This valuation marks a premium compared to its industry's average Forward P/E of 9.13.
It is also worth noting that NFLX currently has a PEG ratio of 1.67. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.98 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.