We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Netflix (NFLX - Free Report) closed the most recent trading day at $271.20, moving +1.32% from the previous trading session. This move outpaced the S&P 500's daily loss of 2.48%. Elsewhere, the Dow lost 2.83%, while the tech-heavy Nasdaq lost 3.04%.
Prior to today's trading, shares of the internet video service had lost 2.79% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 8.57% and the S&P 500's loss of 8.82% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be January 17, 2019. The company is expected to report EPS of $0.25, down 39.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.21 billion, up 28.05% from the prior-year quarter.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.42% lower. NFLX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 65.85 right now. This represents a premium compared to its industry's average Forward P/E of 12.52.
Investors should also note that NFLX has a PEG ratio of 2.19 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.84 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 47, putting it in the top 18% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Netflix (NFLX) Gains As Market Dips: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $271.20, moving +1.32% from the previous trading session. This move outpaced the S&P 500's daily loss of 2.48%. Elsewhere, the Dow lost 2.83%, while the tech-heavy Nasdaq lost 3.04%.
Prior to today's trading, shares of the internet video service had lost 2.79% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 8.57% and the S&P 500's loss of 8.82% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be January 17, 2019. The company is expected to report EPS of $0.25, down 39.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.21 billion, up 28.05% from the prior-year quarter.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.42% lower. NFLX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 65.85 right now. This represents a premium compared to its industry's average Forward P/E of 12.52.
Investors should also note that NFLX has a PEG ratio of 2.19 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.84 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 47, putting it in the top 18% 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.