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Netflix (NFLX) Stock Moves -1.08%: What You Should Know

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Netflix (NFLX - Free Report) closed the most recent trading day at $230, moving -1.08% from the previous trading session. This change was narrower than the S&P 500's 2.37% loss on the day. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 0.21%.

Prior to today's trading, shares of the internet video service had lost 1.22% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 9.74% and the S&P 500's loss of 6.51% in that time.

Netflix will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2022. In that report, analysts expect Netflix to post earnings of $2.11 per share. This would mark a year-over-year decline of 33.86%. Our most recent consensus estimate is calling for quarterly revenue of $7.85 billion, up 4.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10 per share and revenue of $31.64 billion. These totals would mark changes of -11.03% and +6.56%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Netflix. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% lower. Netflix currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 23.24 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.5.

Investors should also note that NFLX has a PEG ratio of 1.19 right now. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.93 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 146, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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