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Why Netflix (NFLX) Outpaced the Stock Market Today
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In the latest market close, Netflix (NFLX - Free Report) reached $495.02, with a +1.83% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.59% for the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the internet video service had gained 2.46% over the past month. This has lagged the Consumer Discretionary sector's gain of 5.78% and the S&P 500's gain of 5.16% in that time.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 23, 2024. It is anticipated that the company will report an EPS of $2.18, marking a 1716.67% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.7 billion, up 10.86% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.07 per share and revenue of $33.58 billion, indicating changes of +21.31% and +6.22%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Netflix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Netflix is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 40.27. This valuation marks a premium compared to its industry's average Forward P/E of 14.51.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Broadcast Radio and Television industry stood at 1.58 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Why Netflix (NFLX) Outpaced the Stock Market Today
In the latest market close, Netflix (NFLX - Free Report) reached $495.02, with a +1.83% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.59% for the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the internet video service had gained 2.46% over the past month. This has lagged the Consumer Discretionary sector's gain of 5.78% and the S&P 500's gain of 5.16% in that time.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 23, 2024. It is anticipated that the company will report an EPS of $2.18, marking a 1716.67% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.7 billion, up 10.86% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.07 per share and revenue of $33.58 billion, indicating changes of +21.31% and +6.22%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Netflix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Netflix is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 40.27. This valuation marks a premium compared to its industry's average Forward P/E of 14.51.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Broadcast Radio and Television industry stood at 1.58 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.