Netflix (NFLX) Investor Attention: Key Information You Need to Know
Netflix has been a hot topic lately, landing on Zacks.com’s most searched stocks list. If you’re curious about what’s driving this attention, there are a few key factors to consider. In the last month, Netflix’s stock has seen a robust +19% return, outperforming the Zacks S&P 500 composite’s +2.1% change. This performance aligns with the broader Broadcast Radio and Television industry, where Netflix resides, which has seen a 15.1% gain.
But what does this mean for the future of Netflix’s stock? While headlines and rumors can cause quick price shifts, it’s essential to look beyond the hype. At Zacks, we focus on a crucial indicator of a company’s stock performance: earnings estimate revisions. By evaluating how analysts are adjusting their earnings projections, we get a sense of a stock’s fair value based on its future earnings potential.
For Netflix, the current quarter is expected to see earnings of $4.20 per share, indicating a significant +99.1% change from the same period last year. The full fiscal year estimates project positive growth of +64.4%, with the next year expecting a further +19.5% increase. This steady growth has earned Netflix a Zacks Rank #3 (Hold).
Ensuring that a company can not only grow its earnings but also its revenues is key to its financial health. Netflix’s revenue estimates show a solid +15% year-over-year change for the current quarter, and projections for the next fiscal years indicate continued growth.
In terms of valuation, Netflix is currently trading at a premium to its peers, reflected in its Zacks Value Style Score of D. While this may indicate a premium price tag, it’s essential to consider the company’s growth prospects and the broader market trends.
Ultimately, whether Netflix is the right investment for you depends on your financial goals and risk tolerance. By staying informed on the facts and numbers, you can make a well-informed decision about how Netflix fits into your investment strategy.
