Prior to today’s trading, shares of the internet video service had gained 11.69% over the past month. This has outpaced the Consumer Discretionary sector’s gain of 0.29% and the S&P 500’s gain of 0.46% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be October 19, 2021. In that report, analysts expect NFLX to post earnings of $2.57 per share. This would mark year-over-year growth of 47.7%. Our most recent consensus estimate is calling for quarterly revenue of $7.48 billion, up 16.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.38 per share and revenue of $29.68 billion. These totals would mark changes of +70.72% and +18.74%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NFLX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. NFLX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 56.17. This represents a premium compared to its industry’s average Forward P/E of 15.
Also, we should mention that NFLX has a PEG ratio of 1.83. 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. NFLX‘s industry had an average PEG ratio of 1.24 as of yesterday’s close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.