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Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $500.86, marking a -1.36% move from the previous day. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the internet video service had lost 3.25% in the past month. In that same time, the Consumer Discretionary sector gained 2.79%, while the S&P 500 gained 4.12%.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2021. In that report, analysts expect NFLX to post earnings of $1.38 per share. This would mark year-over-year growth of 6.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.60 billion, up 20.79% from the year-ago period.
Investors might also notice recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, 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 0.41% higher. NFLX currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 55.87 right now. For comparison, its industry has an average Forward P/E of 17.2, which means NFLX is trading at a premium to the group.
Investors should also note that NFLX has a PEG ratio of 1.86 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 1.47 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 181, putting it in the bottom 30% 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
In the latest trading session, Netflix (NFLX - Free Report) closed at $500.86, marking a -1.36% move from the previous day. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the internet video service had lost 3.25% in the past month. In that same time, the Consumer Discretionary sector gained 2.79%, while the S&P 500 gained 4.12%.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2021. In that report, analysts expect NFLX to post earnings of $1.38 per share. This would mark year-over-year growth of 6.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.60 billion, up 20.79% from the year-ago period.
Investors might also notice recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, 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 0.41% higher. NFLX currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 55.87 right now. For comparison, its industry has an average Forward P/E of 17.2, which means NFLX is trading at a premium to the group.
Investors should also note that NFLX has a PEG ratio of 1.86 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 1.47 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 181, putting it in the bottom 30% 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.