In the latest trading session, Netflix (NFLX) closed at $727.43, marking a +0.79% move from the previous day. This change outpaced the S&P 500’s 0.71% gain on the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 0.6%.
Coming into today, shares of the internet video service had gained 7.15% in the past month. In that same time, the Consumer Discretionary sector gained 6.39%, while the S&P 500 gained 6.41%.
The upcoming earnings release of Netflix will be of great interest to investors. The company’s earnings report is expected on October 17, 2024. The company’s upcoming EPS is projected at $5.07, signifying a 35.92% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.76 billion, indicating a 14.31% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.08 per share and a revenue of $38.68 billion, indicating changes of +58.6% and +14.71%, respectively, from the former year.
Investors should also note any 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Netflix currently has a Zacks Rank of #3 (Hold).
Investors should also note Netflix’s current valuation metrics, including its Forward P/E ratio of 37.82. This indicates a premium in contrast to its industry’s Forward P/E of 10.68.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 0.88.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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