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Netflix (NFLX) Rises Higher Than Market: Key Facts
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The latest trading session saw Netflix (NFLX - Free Report) ending at $611.08, denoting a +1.69% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Prior to today's trading, shares of the internet video service had gained 7.72% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.03% and the S&P 500's gain of 2.06% in that time.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company's earnings per share (EPS) are projected to be $4.50, reflecting a 56.25% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.25 billion, indicating a 13.35% upward movement from the same quarter last year.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $17.03 per share and revenue of $38.62 billion. These results would represent year-over-year changes of +41.56% and +14.53%, respectively.
It is also important to note the recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.6% rise in the Zacks Consensus EPS estimate. Netflix presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 35.28. This signifies a premium in comparison to the average Forward P/E of 9.28 for its industry.
Also, we should mention that NFLX has a PEG ratio of 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.6 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 29% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Netflix (NFLX) Rises Higher Than Market: Key Facts
The latest trading session saw Netflix (NFLX - Free Report) ending at $611.08, denoting a +1.69% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Prior to today's trading, shares of the internet video service had gained 7.72% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.03% and the S&P 500's gain of 2.06% in that time.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company's earnings per share (EPS) are projected to be $4.50, reflecting a 56.25% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.25 billion, indicating a 13.35% upward movement from the same quarter last year.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $17.03 per share and revenue of $38.62 billion. These results would represent year-over-year changes of +41.56% and +14.53%, respectively.
It is also important to note the recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.6% rise in the Zacks Consensus EPS estimate. Netflix presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 35.28. This signifies a premium in comparison to the average Forward P/E of 9.28 for its industry.
Also, we should mention that NFLX has a PEG ratio of 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 0.6 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 29% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.