U.S. markets closed
  • S&P Futures

    3,688.00
    -21.00 (-0.57%)
     
  • Dow Futures

    29,528.00
    -141.00 (-0.48%)
     
  • Nasdaq Futures

    11,311.75
    -65.00 (-0.57%)
     
  • Russell 2000 Futures

    1,676.00
    -10.10 (-0.60%)
     
  • Crude Oil

    79.03
    +0.29 (+0.37%)
     
  • Gold

    1,646.40
    -9.20 (-0.56%)
     
  • Silver

    18.66
    -0.25 (-1.35%)
     
  • EUR/USD

    0.9645
    -0.0043 (-0.44%)
     
  • 10-Yr Bond

    3.6970
    -0.0110 (-0.30%)
     
  • Vix

    29.92
    +2.57 (+9.40%)
     
  • GBP/USD

    1.0519
    -0.0338 (-3.11%)
     
  • USD/JPY

    143.8600
    +0.5400 (+0.38%)
     
  • BTC-USD

    18,809.78
    -143.36 (-0.76%)
     
  • CMC Crypto 200

    431.66
    -12.87 (-2.90%)
     
  • FTSE 100

    7,018.60
    -140.92 (-1.97%)
     
  • Nikkei 225

    26,563.10
    -590.73 (-2.18%)
     

Netflix (NFLX) Outpaces Stock Market Gains: What You Should Know

·3 min read

Netflix (NFLX) closed at $243.63 in the latest trading session, marking a +1.46% move from the prior day. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.

Coming into today, shares of the internet video service had lost 0.43% in the past month. In that same time, the Consumer Discretionary sector lost 11.32%, while the S&P 500 lost 9.94%.

Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be October 18, 2022. The company is expected to report EPS of $2.12, down 33.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.86 billion, up 5.02% from the year-ago period.

NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $31.68 billion. These results would represent year-over-year changes of -10.68% and +6.68%, respectively.

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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Netflix is currently a Zacks Rank #3 (Hold).

In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 23.91. This valuation marks a premium compared to its industry's average Forward P/E of 9.13.

It is also worth noting that NFLX currently has a PEG ratio of 1.67. 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 0.98 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.

To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research