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Netflix (NFLX) Gains But Lags Market: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $378.21, moving +0.8% from the previous trading session. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq added 1.42%.
Heading into today, shares of the internet video service had gained 4.25% over the past month, outpacing the Consumer Discretionary sector's loss of 1.47% and the S&P 500's gain of 1.18% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be April 16, 2019. In that report, analysts expect NFLX to post earnings of $0.58 per share. This would mark a year-over-year decline of 9.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.49 billion, up 21.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $20.17 billion, which would represent changes of +51.12% and +27.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NFLX. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.05% higher. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 92.71. Its industry sports an average Forward P/E of 17.7, so we one might conclude that NFLX is trading at a premium comparatively.
It is also worth noting that NFLX currently has a PEG ratio of 3.09. 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 1.24 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 72, putting it in the top 29% 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 But Lags Market: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $378.21, moving +0.8% from the previous trading session. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq added 1.42%.
Heading into today, shares of the internet video service had gained 4.25% over the past month, outpacing the Consumer Discretionary sector's loss of 1.47% and the S&P 500's gain of 1.18% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release, which is expected to be April 16, 2019. In that report, analysts expect NFLX to post earnings of $0.58 per share. This would mark a year-over-year decline of 9.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.49 billion, up 21.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $20.17 billion, which would represent changes of +51.12% and +27.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NFLX. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.05% higher. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 92.71. Its industry sports an average Forward P/E of 17.7, so we one might conclude that NFLX is trading at a premium comparatively.
It is also worth noting that NFLX currently has a PEG ratio of 3.09. 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 1.24 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 72, putting it in the top 29% 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.