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Netflix (NFLX) Gains But Lags Market: What You Should Know
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Netflix (NFLX - Free Report) closed at $294.94 in the latest trading session, marking a +0.49% move from the prior day. The stock lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Coming into today, shares of the internet video service had lost 18.14% in the past month. In that same time, the Consumer Discretionary sector lost 8.84%, while the S&P 500 lost 6.68%.
Netflix will be looking to display strength as it nears its next earnings release. In that report, analysts expect Netflix to post earnings of $2.81 per share. This would mark a year-over-year decline of 20.4%. Meanwhile, our latest consensus estimate is calling for revenue of $8.18 billion, up 3.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.18 per share and revenue of $34.15 billion, which would represent changes of +12.36% and +8.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant. Netflix currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Netflix currently has a Forward P/E ratio of 26.25. Its industry sports an average Forward P/E of 11.71, so we one might conclude that Netflix is trading at a premium comparatively.
We can also see that NFLX currently has a PEG ratio of 1.36. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 33% 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.
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) Gains But Lags Market: What You Should Know
Netflix (NFLX - Free Report) closed at $294.94 in the latest trading session, marking a +0.49% move from the prior day. The stock lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Coming into today, shares of the internet video service had lost 18.14% in the past month. In that same time, the Consumer Discretionary sector lost 8.84%, while the S&P 500 lost 6.68%.
Netflix will be looking to display strength as it nears its next earnings release. In that report, analysts expect Netflix to post earnings of $2.81 per share. This would mark a year-over-year decline of 20.4%. Meanwhile, our latest consensus estimate is calling for revenue of $8.18 billion, up 3.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.18 per share and revenue of $34.15 billion, which would represent changes of +12.36% and +8.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant. Netflix currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Netflix currently has a Forward P/E ratio of 26.25. Its industry sports an average Forward P/E of 11.71, so we one might conclude that Netflix is trading at a premium comparatively.
We can also see that NFLX currently has a PEG ratio of 1.36. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.