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Netflix (NFLX) Gains As Market Dips: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $294.40, marking a +0.11% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq 0%.
Coming into today, shares of the internet video service had lost 11.73% in the past month. In that same time, the Consumer Discretionary sector lost 2.43%, while the S&P 500 lost 1.27%.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be January 28, 2019. The company is expected to report EPS of $0.24, down 41.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.20 billion, up 27.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $15.84 billion. These totals would mark changes of +108.8% and +35.49%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.3% lower. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 112.72 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.8.
Meanwhile, NFLX's PEG ratio is currently 3.76. 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 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 109, putting it in the top 42% 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.
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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Netflix (NFLX) Gains As Market Dips: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $294.40, marking a +0.11% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq 0%.
Coming into today, shares of the internet video service had lost 11.73% in the past month. In that same time, the Consumer Discretionary sector lost 2.43%, while the S&P 500 lost 1.27%.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be January 28, 2019. The company is expected to report EPS of $0.24, down 41.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.20 billion, up 27.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $15.84 billion. These totals would mark changes of +108.8% and +35.49%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.3% lower. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 112.72 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.8.
Meanwhile, NFLX's PEG ratio is currently 3.76. 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 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 109, putting it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.