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Netflix (NFLX) Stock Falls Amid Market Uptick: What Investors Need to Know
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Netflix (NFLX - Free Report) ended the recent trading session at $365.93, demonstrating a -1.98% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.
Shares of the internet video service witnessed a loss of 14.12% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 2.8% and the S&P 500's loss of 2.1%.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company plans to announce its earnings on October 18, 2023. In that report, analysts expect Netflix to post earnings of $3.47 per share. This would mark year-over-year growth of 11.94%. Simultaneously, our latest consensus estimate expects the revenue to be $8.53 billion, showing a 7.65% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.91 per share and a revenue of $33.68 billion, representing changes of +19.7% and +6.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Netflix presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 31.35. This indicates a premium in contrast to its industry's Forward P/E of 12.71.
One should further note that NFLX currently holds a PEG ratio of 1.39. 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 1.39 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 206, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Stock Falls Amid Market Uptick: What Investors Need to Know
Netflix (NFLX - Free Report) ended the recent trading session at $365.93, demonstrating a -1.98% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.
Shares of the internet video service witnessed a loss of 14.12% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 2.8% and the S&P 500's loss of 2.1%.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company plans to announce its earnings on October 18, 2023. In that report, analysts expect Netflix to post earnings of $3.47 per share. This would mark year-over-year growth of 11.94%. Simultaneously, our latest consensus estimate expects the revenue to be $8.53 billion, showing a 7.65% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.91 per share and a revenue of $33.68 billion, representing changes of +19.7% and +6.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Netflix presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 31.35. This indicates a premium in contrast to its industry's Forward P/E of 12.71.
One should further note that NFLX currently holds a PEG ratio of 1.39. 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 1.39 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 206, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.