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Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
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Netflix (NFLX - Free Report) closed at $174.45 in the latest trading session, marking a -1.63% move from the prior day. This move lagged the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.05%.
Prior to today's trading, shares of the internet video service had gained 4.51% over the past month. This has outpaced the Consumer Discretionary sector's loss of 6.01% and the S&P 500's loss of 1% in that time.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be July 19, 2022. The company is expected to report EPS of $2.91, down 2.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.04 billion, up 9.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.75 per share and revenue of $32.35 billion, which would represent changes of -4.36% and +8.93%, respectively, from the prior 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.
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 1.78% lower. Netflix currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Netflix currently has a Forward P/E ratio of 16.5. This valuation marks a premium compared to its industry's average Forward P/E of 6.65.
Investors should also note that NFLX has a PEG ratio of 1.15 right now. 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 0.88 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 136, putting it in the bottom 47% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
Netflix (NFLX - Free Report) closed at $174.45 in the latest trading session, marking a -1.63% move from the prior day. This move lagged the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.05%.
Prior to today's trading, shares of the internet video service had gained 4.51% over the past month. This has outpaced the Consumer Discretionary sector's loss of 6.01% and the S&P 500's loss of 1% in that time.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This is expected to be July 19, 2022. The company is expected to report EPS of $2.91, down 2.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.04 billion, up 9.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.75 per share and revenue of $32.35 billion, which would represent changes of -4.36% and +8.93%, respectively, from the prior 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.
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 1.78% lower. Netflix currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Netflix currently has a Forward P/E ratio of 16.5. This valuation marks a premium compared to its industry's average Forward P/E of 6.65.
Investors should also note that NFLX has a PEG ratio of 1.15 right now. 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 0.88 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 136, putting it in the bottom 47% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.