Netflix (NFLX) Rises Higher Than Market: Key Facts

In the latest close session, Netflix (NFLX) was up +1.16% at $1,202.26. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.94%. Prior to today's trading, shares of the internet video service had lost 4.08% lagged the Consumer Discretionary sector's gain of 3.04% and the S&P 500's gain of 2.32%.The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. In that report, analysts expect Netflix to post earnings of $6.88 per share. This would mark year-over-year growth of 27.41%. Meanwhile, our latest consensus estimate is calling for revenue of $11.52 billion, up 17.3% from the prior-year quarter. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $26.06 per share and revenue of $45.03 billion, indicating changes of +31.42% and +15.47%, respectively, compared to the previous year. It is also important to note the recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually 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. With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 45.6. This indicates a premium in contrast to its industry's Forward P/E of 29.64. Investors should also note that NFLX has a PEG ratio of 2 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 2. The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 30% of over 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks