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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
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Netflix (NFLX - Free Report) closed the most recent trading day at $911.06, moving +0.99% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.31%.
The the stock of internet video service has risen by 18.1% in the past month, leading the Consumer Discretionary sector's gain of 10.43% and the S&P 500's gain of 5.79%.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.20, marking a 99.05% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.15 billion, showing a 14.95% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.78 per share and revenue of $38.91 billion. These totals would mark changes of +64.42% and +15.37%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Netflix currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 45.62. For comparison, its industry has an average Forward P/E of 9.52, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.74. 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 0.79.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
Netflix (NFLX - Free Report) closed the most recent trading day at $911.06, moving +0.99% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.31%.
The the stock of internet video service has risen by 18.1% in the past month, leading the Consumer Discretionary sector's gain of 10.43% and the S&P 500's gain of 5.79%.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.20, marking a 99.05% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.15 billion, showing a 14.95% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.78 per share and revenue of $38.91 billion. These totals would mark changes of +64.42% and +15.37%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Netflix currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 45.62. For comparison, its industry has an average Forward P/E of 9.52, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.74. 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 0.79.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.