Netflix (NFLX) continued its upward trajectory as its stock outpaced gains in the broader market. In the latest trading session, Netflix closed at $443.86, marking a 0.83% increase from the previous day. This change outperformed the S&P 500’s 0.74% gain and the tech-heavy Nasdaq’s 11.47% surge.
While Netflix’s stock has gained 1.03% over the past month, it has lagged behind the Consumer Discretionary sector’s gain of 1.26% and the S&P 500’s increase of 3.34% during the same period. However, investors remain hopeful as Netflix approaches its next earnings release scheduled for July 19, 2023.
Analysts are projecting that Netflix will report earnings of $2.81 per share, representing a year-over-year decline of 12.19%. However, the company’s estimated quarterly revenue is expected to reach $8.26 billion, reflecting a 3.61% increase compared to the same period last year.
For the full year, analysts predict earnings of $11.26 per share and revenue of $33.91 billion. These figures would signify changes of +13.17% and +7.27%, respectively, from the previous year.
Netflix’s stock value is currently ranked at #3 (Hold) according to the Zacks Rank system. Positive estimate revisions often indicate analyst optimism regarding a company’s business and profitability. These estimate changes are closely related to near-term share price momentum.
Additionally, Netflix’s valuation metrics are worth noting. The company has a Forward P/E ratio of 39.11, which suggests that it is trading at a premium in comparison to the industry’s average Forward P/E of 13.88. Netflix’s PEG ratio, which combines the P/E ratio with the stock’s expected earnings growth rate, is currently at 1.64. This figure is slightly higher than the industry average of 1.49.
The Broadcast Radio and Television industry, to which Netflix belongs, has a Zacks Industry Rank of 191, placing it within the bottom 25% of all industries. The Zacks Industry Rank serves as a measurement of the industry groups’ strength by assessing the average Zacks Rank of individual stocks within the groups.
Investors closely monitoring Netflix’s stock performance can utilize Zacks.com to track key metrics and developments in upcoming trading sessions.
In conclusion, Netflix’s stock has outperformed the broader market, but lags behind the Consumer Discretionary sector. Analysts’ estimates for the company’s earnings and revenue reflect a decline in earnings but an increase in revenue. Netflix’s current valuation metrics indicate a premium price compared to the industry average. Investors are advised to monitor the company’s performance closely as it approaches its next earnings release.
Disclaimer: The views expressed in this article are solely those of the author and do not reflect the official position of any agency or organization. Any information or analysis presented above is based on publicly available sources, and the author does not guarantee the accuracy or completeness of the information contained in this article. Investors are advised to conduct their own research and consult with a qualified professional before making any investment decisions.
