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Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $422.48, moving -0.46% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Coming into today, shares of the internet video service had gained 16.33% in the past month. In that same time, the Consumer Discretionary sector gained 1.44%, while the S&P 500 gained 4.31%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be July 19, 2023. On that day, Netflix is projected to report earnings of $2.81 per share, which would represent a year-over-year decline of 12.19%. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 3.44% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $11.22 per share and revenue of $33.86 billion. These results would represent year-over-year changes of +12.76% and +7.09%, respectively.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 37.84 right now. For comparison, its industry has an average Forward P/E of 13.4, which means Netflix is trading at a premium to the group.
We can also see that NFLX currently has a PEG ratio of 1.59. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $422.48, moving -0.46% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Coming into today, shares of the internet video service had gained 16.33% in the past month. In that same time, the Consumer Discretionary sector gained 1.44%, while the S&P 500 gained 4.31%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be July 19, 2023. On that day, Netflix is projected to report earnings of $2.81 per share, which would represent a year-over-year decline of 12.19%. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 3.44% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $11.22 per share and revenue of $33.86 billion. These results would represent year-over-year changes of +12.76% and +7.09%, respectively.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 37.84 right now. For comparison, its industry has an average Forward P/E of 13.4, which means Netflix is trading at a premium to the group.
We can also see that NFLX currently has a PEG ratio of 1.59. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.