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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 $334.88, marking a -0.78% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.58%.
Prior to today's trading, shares of the internet video service had lost 7.24% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.25% and the S&P 500's gain of 0.84% 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 $2.81 per share. This would mark a year-over-year decline of 20.4%. Our most recent consensus estimate is calling for quarterly revenue of $8.18 billion, up 3.92% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $11.18 per share and revenue of $34.15 billion. These results would represent year-over-year changes of +12.36% and +8.02%, respectively.
Investors might also notice recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.1% higher. Netflix is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 30.19 right now. For comparison, its industry has an average Forward P/E of 15.54, which means Netflix is trading at a premium to the group.
It is also worth noting that NFLX currently has a PEG ratio of 1.57. 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 industry currently had an average PEG ratio of 1.56 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 186, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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 $334.88, marking a -0.78% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.58%.
Prior to today's trading, shares of the internet video service had lost 7.24% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.25% and the S&P 500's gain of 0.84% 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 $2.81 per share. This would mark a year-over-year decline of 20.4%. Our most recent consensus estimate is calling for quarterly revenue of $8.18 billion, up 3.92% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $11.18 per share and revenue of $34.15 billion. These results would represent year-over-year changes of +12.36% and +8.02%, respectively.
Investors might also notice recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.1% higher. Netflix is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 30.19 right now. For comparison, its industry has an average Forward P/E of 15.54, which means Netflix is trading at a premium to the group.
It is also worth noting that NFLX currently has a PEG ratio of 1.57. 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 industry currently had an average PEG ratio of 1.56 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 186, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.