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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 $438.84, marking a -1.58% move from the previous day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the internet video service had gained 11.54% over the past month, outpacing the Consumer Discretionary sector's gain of 1.29% and the S&P 500's gain of 4.16% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which 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%. Meanwhile, our latest consensus estimate is calling for revenue of $8.26 billion, up 3.61% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.27 per share and revenue of $33.92 billion, which would represent changes of +13.27% and +7.3%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 0.99% higher. Netflix is currently a Zacks Rank #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 39.58. This represents a premium compared to its industry's average Forward P/E of 13.81.
Investors should also note that NFLX has a PEG ratio of 1.66 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. 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 170, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $438.84, marking a -1.58% move from the previous day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the internet video service had gained 11.54% over the past month, outpacing the Consumer Discretionary sector's gain of 1.29% and the S&P 500's gain of 4.16% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which 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%. Meanwhile, our latest consensus estimate is calling for revenue of $8.26 billion, up 3.61% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.27 per share and revenue of $33.92 billion, which would represent changes of +13.27% and +7.3%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 0.99% higher. Netflix is currently a Zacks Rank #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 39.58. This represents a premium compared to its industry's average Forward P/E of 13.81.
Investors should also note that NFLX has a PEG ratio of 1.66 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. 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 170, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.