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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $266.63, moving +1.99% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the internet video service had lost 8.22% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.73% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be January 28, 2019. The company is expected to report EPS of $0.24, down 41.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.21 billion, up 28.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.63 per share and revenue of $15.84 billion. These totals would mark changes of +110.4% and +35.5%, respectively, from last year.
Any recent changes to analyst estimates for NFLX should also be noted by investors. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 99.45. This valuation marks a premium compared to its industry's average Forward P/E of 13.92.
Also, we should mention that NFLX has a PEG ratio of 3.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NFLX's industry had an average PEG ratio of 0.92 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 36, putting it in the top 14% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $266.63, moving +1.99% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the internet video service had lost 8.22% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.73% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be January 28, 2019. The company is expected to report EPS of $0.24, down 41.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.21 billion, up 28.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.63 per share and revenue of $15.84 billion. These totals would mark changes of +110.4% and +35.5%, respectively, from last year.
Any recent changes to analyst estimates for NFLX should also be noted by investors. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 99.45. This valuation marks a premium compared to its industry's average Forward P/E of 13.92.
Also, we should mention that NFLX has a PEG ratio of 3.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NFLX's industry had an average PEG ratio of 0.92 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 36, putting it in the top 14% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.