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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
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Netflix (NFLX - Free Report) closed at $106.14 in the latest trading session, marking a +1.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 0.82%.
Coming into today, shares of the internet video service had lost 5.31% in the past month. In that same time, the Consumer Discretionary sector lost 4.51%, while the S&P 500 lost 0.31%.
The upcoming earnings release of Netflix will be of great interest to investors. The company's upcoming EPS is projected at $0.54, signifying a 25.58% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.97 billion, reflecting a 16.78% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.53 per share and revenue of $45.09 billion, which would represent changes of +27.78% and +15.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has moved 0.7% lower. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 41.34. This represents a premium compared to its industry average Forward P/E of 14.67.
One should further note that NFLX currently holds a PEG ratio of 1.55. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.22 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
Netflix (NFLX - Free Report) closed at $106.14 in the latest trading session, marking a +1.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 0.82%.
Coming into today, shares of the internet video service had lost 5.31% in the past month. In that same time, the Consumer Discretionary sector lost 4.51%, while the S&P 500 lost 0.31%.
The upcoming earnings release of Netflix will be of great interest to investors. The company's upcoming EPS is projected at $0.54, signifying a 25.58% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.97 billion, reflecting a 16.78% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.53 per share and revenue of $45.09 billion, which would represent changes of +27.78% and +15.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has moved 0.7% lower. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 41.34. This represents a premium compared to its industry average Forward P/E of 14.67.
One should further note that NFLX currently holds a PEG ratio of 1.55. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.22 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.