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Netflix (NFLX) Gains As Market Dips: What You Should Know
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In the latest trading session, Netflix (NFLX - Free Report) closed at $309.70, marking a +0.09% move from the previous day. This change outpaced the S&P 500's 1.17% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Prior to today's trading, shares of the internet video service had gained 0.32% over the past month. This has outpaced the Consumer Discretionary sector's loss of 2.99% and the S&P 500's loss of 5.25% in that time.
Netflix will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2023. The company is expected to report EPS of $0.45, down 66.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.84 billion, up 1.67% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.56% lower within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 28.95. This valuation marks a premium compared to its industry's average Forward P/E of 13.55.
Also, we should mention that NFLX has a PEG ratio of 3.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NFLX's industry had an average PEG ratio of 1.49 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 230, putting it in the bottom 9% 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) Gains As Market Dips: What You Should Know
In the latest trading session, Netflix (NFLX - Free Report) closed at $309.70, marking a +0.09% move from the previous day. This change outpaced the S&P 500's 1.17% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Prior to today's trading, shares of the internet video service had gained 0.32% over the past month. This has outpaced the Consumer Discretionary sector's loss of 2.99% and the S&P 500's loss of 5.25% in that time.
Netflix will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2023. The company is expected to report EPS of $0.45, down 66.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.84 billion, up 1.67% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.56% lower within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 28.95. This valuation marks a premium compared to its industry's average Forward P/E of 13.55.
Also, we should mention that NFLX has a PEG ratio of 3.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NFLX's industry had an average PEG ratio of 1.49 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 230, putting it in the bottom 9% 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.