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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 $361.73, moving -1.72% from the previous trading session. This change lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.48%.
Heading into today, shares of the internet video service had lost 9.25% over the past month, lagging the Consumer Discretionary sector's loss of 2.88% and the S&P 500's loss of 2.43% in that time.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. On that day, Netflix is projected to report earnings of $2.90 per share, which would represent a year-over-year decline of 22.67%. Our most recent consensus estimate is calling for quarterly revenue of $7.95 billion, up 10.94% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.92 per share and revenue of $33.53 billion. These results would represent year-over-year changes of -2.85% and +12.91%, respectively.
Investors should also note any recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-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 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. Within the past 30 days, our consensus EPS projection has moved 4.86% lower. Netflix is currently a Zacks Rank #4 (Sell).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 33.72. Its industry sports an average Forward P/E of 11.39, so we one might conclude that Netflix is trading at a premium comparatively.
Also, we should mention that NFLX has a PEG ratio of 1.35. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 $361.73, moving -1.72% from the previous trading session. This change lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.48%.
Heading into today, shares of the internet video service had lost 9.25% over the past month, lagging the Consumer Discretionary sector's loss of 2.88% and the S&P 500's loss of 2.43% in that time.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. On that day, Netflix is projected to report earnings of $2.90 per share, which would represent a year-over-year decline of 22.67%. Our most recent consensus estimate is calling for quarterly revenue of $7.95 billion, up 10.94% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.92 per share and revenue of $33.53 billion. These results would represent year-over-year changes of -2.85% and +12.91%, respectively.
Investors should also note any recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-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 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. Within the past 30 days, our consensus EPS projection has moved 4.86% lower. Netflix is currently a Zacks Rank #4 (Sell).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 33.72. Its industry sports an average Forward P/E of 11.39, so we one might conclude that Netflix is trading at a premium comparatively.
Also, we should mention that NFLX has a PEG ratio of 1.35. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.