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Netflix (NFLX) Gains As Market Dips: What You Should Know
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Netflix (NFLX - Free Report) closed the most recent trading day at $294.88, moving +1.29% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.25%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
Heading into today, shares of the internet video service had lost 8.15% over the past month, lagging the Consumer Discretionary sector's loss of 3.05% and the S&P 500's loss of 2.59% 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 January 19, 2023. In that report, analysts expect Netflix to post earnings of $0.45 per share. This would mark a year-over-year decline of 66.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.84 billion, up 1.67% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.31 per share and revenue of $31.6 billion. These results would represent year-over-year changes of -8.27% and +6.39%, respectively.
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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Netflix is currently a Zacks Rank #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 28.23. For comparison, its industry has an average Forward P/E of 7.14, which means Netflix is trading at a premium to the group.
Meanwhile, NFLX's PEG ratio is currently 3.32. 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 0.69 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Netflix (NFLX) Gains As Market Dips: What You Should Know
Netflix (NFLX - Free Report) closed the most recent trading day at $294.88, moving +1.29% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.25%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
Heading into today, shares of the internet video service had lost 8.15% over the past month, lagging the Consumer Discretionary sector's loss of 3.05% and the S&P 500's loss of 2.59% 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 January 19, 2023. In that report, analysts expect Netflix to post earnings of $0.45 per share. This would mark a year-over-year decline of 66.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.84 billion, up 1.67% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.31 per share and revenue of $31.6 billion. These results would represent year-over-year changes of -8.27% and +6.39%, respectively.
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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Netflix is currently a Zacks Rank #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 28.23. For comparison, its industry has an average Forward P/E of 7.14, which means Netflix is trading at a premium to the group.
Meanwhile, NFLX's PEG ratio is currently 3.32. 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 0.69 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.