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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 $355.88, moving -1.73% from the previous trading session. This change lagged the S&P 500's daily loss of 0.27%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the internet video service had gained 1.51% in the past month. In that same time, the Consumer Discretionary sector gained 3.51%, while the S&P 500 gained 7.36%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be April 19, 2022. On that day, Netflix is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 21.87%. Meanwhile, our latest consensus estimate is calling for revenue of $7.94 billion, up 10.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.90 per share and revenue of $33.36 billion. These totals would mark changes of -3.02% and +12.35%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 33.24. Its industry sports an average Forward P/E of 8.09, so we one might conclude that Netflix is trading at a premium comparatively.
Meanwhile, NFLX's PEG ratio is currently 1.33. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.33 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 107, putting it in the top 43% 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 $355.88, moving -1.73% from the previous trading session. This change lagged the S&P 500's daily loss of 0.27%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the internet video service had gained 1.51% in the past month. In that same time, the Consumer Discretionary sector gained 3.51%, while the S&P 500 gained 7.36%.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be April 19, 2022. On that day, Netflix is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 21.87%. Meanwhile, our latest consensus estimate is calling for revenue of $7.94 billion, up 10.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.90 per share and revenue of $33.36 billion. These totals would mark changes of -3.02% and +12.35%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 33.24. Its industry sports an average Forward P/E of 8.09, so we one might conclude that Netflix is trading at a premium comparatively.
Meanwhile, NFLX's PEG ratio is currently 1.33. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.33 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 107, putting it in the top 43% 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.