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Netflix (NFLX) Gains But Lags Market: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $255.57, marking a +0.75% move from the previous day. The stock lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.38%.
Heading into today, shares of the internet video service had lost 10.25% over the past month, lagging the Consumer Discretionary sector's loss of 8.69% and the S&P 500's loss of 7.55% 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 January 17, 2019. In that report, analysts expect NFLX to post earnings of $0.25 per share. This would mark a year-over-year decline of 39.02%. Meanwhile, our latest consensus estimate is calling for revenue of $4.21 billion, up 28.05% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $15.81 billion. These results would represent year-over-year changes of +110.4% and +35.24%, respectively.
Any recent changes to analyst estimates for NFLX 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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% lower. NFLX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 96.5. This valuation marks a premium compared to its industry's average Forward P/E of 14.06.
It is also worth noting that NFLX currently has a PEG ratio of 3.22. 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. NFLX's industry had an average PEG ratio of 0.89 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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) Gains But Lags Market: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $255.57, marking a +0.75% move from the previous day. The stock lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.38%.
Heading into today, shares of the internet video service had lost 10.25% over the past month, lagging the Consumer Discretionary sector's loss of 8.69% and the S&P 500's loss of 7.55% 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 January 17, 2019. In that report, analysts expect NFLX to post earnings of $0.25 per share. This would mark a year-over-year decline of 39.02%. Meanwhile, our latest consensus estimate is calling for revenue of $4.21 billion, up 28.05% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $15.81 billion. These results would represent year-over-year changes of +110.4% and +35.24%, respectively.
Any recent changes to analyst estimates for NFLX 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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% lower. NFLX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 96.5. This valuation marks a premium compared to its industry's average Forward P/E of 14.06.
It is also worth noting that NFLX currently has a PEG ratio of 3.22. 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. NFLX's industry had an average PEG ratio of 0.89 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.