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Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
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Netflix (NFLX - Free Report) closed at $339.17 in the latest trading session, marking a -1.59% move from the prior day. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the internet video service lost 5.08% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.32% and the S&P 500's gain of 2.34% 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 October 15, 2018. The company is expected to report EPS of $0.68, up 134.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.99 billion, up 33.68% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $15.88 billion. These results would represent year-over-year changes of +115.2% and +35.82%, respectively.
It is also important to note the recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.64% lower. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 127.99 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.82.
Investors should also note that NFLX has a PEG ratio of 4.27 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NFLX's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 37% 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 (NFLX) Dips More Than Broader Markets: What You Should Know
Netflix (NFLX - Free Report) closed at $339.17 in the latest trading session, marking a -1.59% move from the prior day. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the internet video service lost 5.08% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.32% and the S&P 500's gain of 2.34% 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 October 15, 2018. The company is expected to report EPS of $0.68, up 134.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.99 billion, up 33.68% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $15.88 billion. These results would represent year-over-year changes of +115.2% and +35.82%, respectively.
It is also important to note the recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.64% lower. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 127.99 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.82.
Investors should also note that NFLX has a PEG ratio of 4.27 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NFLX's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 37% 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.