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Netflix (NFLX) Stock Moves -0.56%: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $384.15, moving -0.56% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.64%. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 1.82%.
Heading into today, shares of the internet video service had lost 9.65% over the past month, lagging the Consumer Discretionary sector's loss of 2.8% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be October 18, 2023. The company is expected to report EPS of $3.49, up 12.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.53 billion, up 7.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.92 per share and revenue of $33.73 billion, which would represent changes of +19.8% and +6.69%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 32.42. This valuation marks a premium compared to its industry's average Forward P/E of 12.77.
It is also worth noting that NFLX currently has a PEG ratio of 1.28. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix (NFLX) Stock Moves -0.56%: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $384.15, moving -0.56% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.64%. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 1.82%.
Heading into today, shares of the internet video service had lost 9.65% over the past month, lagging the Consumer Discretionary sector's loss of 2.8% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be October 18, 2023. The company is expected to report EPS of $3.49, up 12.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.53 billion, up 7.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.92 per share and revenue of $33.73 billion, which would represent changes of +19.8% and +6.69%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 32.42. This valuation marks a premium compared to its industry's average Forward P/E of 12.77.
It is also worth noting that NFLX currently has a PEG ratio of 1.28. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.