Heading into today, shares of the internet video service had gained 0.58% over the past month, outpacing the Consumer Discretionary sector’s loss of 0.3% and lagging the S&P 500’s gain of 1.07% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. This is expected to be July 20, 2021. The company is expected to report EPS of $3.20, up 101.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.31 billion, up 18.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.43 per share and revenue of $29.7 billion, which would represent changes of +71.55% and +18.84%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NFLX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate has moved 0.25% higher. NFLX is currently a Zacks Rank #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 48.03. This valuation marks a premium compared to its industry’s average Forward P/E of 13.9.
Investors should also note that NFLX has a PEG ratio of 1.48 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.44 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 111, putting it in the top 44% 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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