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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
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Netflix (NFLX - Free Report) closed at $81.68 in the latest trading session, marking a +1.66% move from the prior day. This change outpaced the S&P 500's 1.65% gain on the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 3.07%.
Heading into today, shares of the internet video service had lost 7.68% over the past month, lagging the Consumer Discretionary sector's gain of 1.52% and the S&P 500's gain of 0.48%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.79, reflecting a 9.72% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $12.57 billion, up 13.48% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.6 per share and a revenue of $51.41 billion, representing changes of +42.29% and +13.77%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 22.33. This denotes a premium relative to the industry average Forward P/E of 13.48.
Investors should also note that NFLX has a PEG ratio of 1.02 right now. 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 1.05 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
Netflix (NFLX - Free Report) closed at $81.68 in the latest trading session, marking a +1.66% move from the prior day. This change outpaced the S&P 500's 1.65% gain on the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 3.07%.
Heading into today, shares of the internet video service had lost 7.68% over the past month, lagging the Consumer Discretionary sector's gain of 1.52% and the S&P 500's gain of 0.48%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.79, reflecting a 9.72% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $12.57 billion, up 13.48% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.6 per share and a revenue of $51.41 billion, representing changes of +42.29% and +13.77%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 22.33. This denotes a premium relative to the industry average Forward P/E of 13.48.
Investors should also note that NFLX has a PEG ratio of 1.02 right now. 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 1.05 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.