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Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $591.15, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.06% loss on the day. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Prior to today's trading, shares of the internet video service had lost 2.5% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.83% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be January 20, 2022. In that report, analysts expect Netflix to post earnings of $0.82 per share. This would mark a year-over-year decline of 31.09%. Our most recent consensus estimate is calling for quarterly revenue of $7.72 billion, up 16.19% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Netflix. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Netflix is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 44.88. This valuation marks a premium compared to its industry's average Forward P/E of 12.99.
Also, we should mention that NFLX has a PEG ratio of 1.46. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.45 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 124, which puts it in the top 49% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $591.15, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.06% loss on the day. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Prior to today's trading, shares of the internet video service had lost 2.5% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.83% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be January 20, 2022. In that report, analysts expect Netflix to post earnings of $0.82 per share. This would mark a year-over-year decline of 31.09%. Our most recent consensus estimate is calling for quarterly revenue of $7.72 billion, up 16.19% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Netflix. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Netflix is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 44.88. This valuation marks a premium compared to its industry's average Forward P/E of 12.99.
Also, we should mention that NFLX has a PEG ratio of 1.46. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.45 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 124, which puts it in the top 49% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.