We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Rises Higher Than Market: Key Facts
Read MoreHide Full Article
Netflix (NFLX - Free Report) closed at $78.67 in the latest trading session, marking a +2.17% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The stock of internet video service has fallen by 7.83% in the past month, lagging the Consumer Discretionary sector's loss of 1.9% and the S&P 500's loss of 1%.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.76, marking a 15.15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.17 billion, up 15.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $51.19 billion, which would represent changes of +23.32% and +13.3%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.66% decrease. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 24.64. This denotes a premium relative to the industry average Forward P/E of 10.89.
We can also see that NFLX currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.14 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 67, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Netflix (NFLX) Rises Higher Than Market: Key Facts
Netflix (NFLX - Free Report) closed at $78.67 in the latest trading session, marking a +2.17% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The stock of internet video service has fallen by 7.83% in the past month, lagging the Consumer Discretionary sector's loss of 1.9% and the S&P 500's loss of 1%.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.76, marking a 15.15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.17 billion, up 15.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $51.19 billion, which would represent changes of +23.32% and +13.3%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.66% decrease. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 24.64. This denotes a premium relative to the industry average Forward P/E of 10.89.
We can also see that NFLX currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.14 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 67, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.