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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 $597.99, marking a -1.09% move from the previous day. This change lagged the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the internet video service had lost 11.01% over the past month, lagging the Consumer Discretionary sector's loss of 8.73% and the S&P 500's loss of 0.13% in that time.
Netflix will be looking to display strength as it nears its next earnings release. In that report, analysts expect Netflix to post earnings of $0.82 per share. This would mark a year-over-year decline of 31.09%. Our most recent consensus estimate is calling for quarterly revenue of $7.72 billion, up 16.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $29.71 billion, which would represent changes of +76.64% and +18.84%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. Netflix currently has a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 56.28. Its industry sports an average Forward P/E of 15.3, so we one might conclude that Netflix is trading at a premium comparatively.
Meanwhile, NFLX's PEG ratio is currently 1.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $597.99, marking a -1.09% move from the previous day. This change lagged the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the internet video service had lost 11.01% over the past month, lagging the Consumer Discretionary sector's loss of 8.73% and the S&P 500's loss of 0.13% in that time.
Netflix will be looking to display strength as it nears its next earnings release. In that report, analysts expect Netflix to post earnings of $0.82 per share. This would mark a year-over-year decline of 31.09%. Our most recent consensus estimate is calling for quarterly revenue of $7.72 billion, up 16.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $29.71 billion, which would represent changes of +76.64% and +18.84%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. Netflix currently has a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 56.28. Its industry sports an average Forward P/E of 15.3, so we one might conclude that Netflix is trading at a premium comparatively.
Meanwhile, NFLX's PEG ratio is currently 1.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.