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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 $390.80, moving +0.2% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.24%. At the same time, the Dow added 2.51%, and the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the internet video service had gained 0.86% over the past month, outpacing the Consumer Discretionary sector's loss of 1.16% and the S&P 500's loss of 2.58% in that time.
Netflix will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.90, down 22.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.95 billion, up 10.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.92 per share and revenue of $33.53 billion, which would represent changes of -2.85% and +12.91%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. 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.
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. The Zacks Consensus EPS estimate has moved 4.86% lower within the past month. Netflix is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 35.73. This represents a premium compared to its industry's average Forward P/E of 10.72.
Investors should also note that NFLX has a PEG ratio of 1.44 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.44 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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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 $390.80, moving +0.2% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.24%. At the same time, the Dow added 2.51%, and the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the internet video service had gained 0.86% over the past month, outpacing the Consumer Discretionary sector's loss of 1.16% and the S&P 500's loss of 2.58% in that time.
Netflix will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.90, down 22.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.95 billion, up 10.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.92 per share and revenue of $33.53 billion, which would represent changes of -2.85% and +12.91%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. 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.
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. The Zacks Consensus EPS estimate has moved 4.86% lower within the past month. Netflix is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 35.73. This represents a premium compared to its industry's average Forward P/E of 10.72.
Investors should also note that NFLX has a PEG ratio of 1.44 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.44 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.