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Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $610.54, marking a -0.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.
Coming into today, shares of the internet video service had lost 4.86% in the past month. In that same time, the Consumer Discretionary sector lost 1.28%, while the S&P 500 gained 4.32%.
Netflix will be looking to display strength as it nears its next earnings release, which is expected to be January 20, 2022. On that day, Netflix is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 31.09%. Meanwhile, our latest consensus estimate is calling for revenue of $7.72 billion, up 16.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.74 per share and revenue of $29.71 billion. These totals would mark changes of +76.64% and +18.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Netflix. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Netflix is currently a Zacks Rank #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 56.85. Its industry sports an average Forward P/E of 15.25, so we one might conclude that Netflix is trading at a premium comparatively.
We can also see that NFLX currently has a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.54 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 114, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $610.54, marking a -0.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.
Coming into today, shares of the internet video service had lost 4.86% in the past month. In that same time, the Consumer Discretionary sector lost 1.28%, while the S&P 500 gained 4.32%.
Netflix will be looking to display strength as it nears its next earnings release, which is expected to be January 20, 2022. On that day, Netflix is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 31.09%. Meanwhile, our latest consensus estimate is calling for revenue of $7.72 billion, up 16.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.74 per share and revenue of $29.71 billion. These totals would mark changes of +76.64% and +18.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Netflix. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Netflix is currently a Zacks Rank #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 56.85. Its industry sports an average Forward P/E of 15.25, so we one might conclude that Netflix is trading at a premium comparatively.
We can also see that NFLX currently has a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.54 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 114, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.