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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 $368.15, moving -0.31% from the previous trading session. This change lagged the S&P 500's 0.53% gain on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.75%.
Heading into today, shares of the internet video service had gained 13.34% over the past month, outpacing the Consumer Discretionary sector's gain of 0.84% and the S&P 500's gain of 2.16% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. This is expected to be October 15, 2018. The company is expected to report EPS of $0.68, up 134.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.99 billion, up 33.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.67 per share and revenue of $15.87 billion, which would represent changes of +113.6% and +35.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NFLX. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. NFLX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 138.59. Its industry sports an average Forward P/E of 11.47, so we one might conclude that NFLX is trading at a premium comparatively.
It is also worth noting that NFLX currently has a PEG ratio of 4.62. 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 0.93 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 103, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much 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 $368.15, moving -0.31% from the previous trading session. This change lagged the S&P 500's 0.53% gain on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.75%.
Heading into today, shares of the internet video service had gained 13.34% over the past month, outpacing the Consumer Discretionary sector's gain of 0.84% and the S&P 500's gain of 2.16% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. This is expected to be October 15, 2018. The company is expected to report EPS of $0.68, up 134.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.99 billion, up 33.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.67 per share and revenue of $15.87 billion, which would represent changes of +113.6% and +35.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NFLX. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. NFLX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NFLX is holding a Forward P/E ratio of 138.59. Its industry sports an average Forward P/E of 11.47, so we one might conclude that NFLX is trading at a premium comparatively.
It is also worth noting that NFLX currently has a PEG ratio of 4.62. 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 0.93 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 103, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.