We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Netflix (NFLX - Free Report) closed at $428.24 in the latest trading session, marking a -0.37% move from the prior day. This move lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.
Prior to today's trading, shares of the internet video service had gained 8.76% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.88% and the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be July 19, 2023. In that report, analysts expect Netflix to post earnings of $2.81 per share. This would mark a year-over-year decline of 12.19%. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 3.44% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $11.26 per share and revenue of $33.86 billion. These results would represent year-over-year changes of +13.17% and +7.09%, respectively.
It is also important to note the recent changes to analyst estimates for Netflix. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Netflix is currently a Zacks Rank #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 38.19. For comparison, its industry has an average Forward P/E of 13.74, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.61. 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 1.44 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 201, which puts it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed at $428.24 in the latest trading session, marking a -0.37% move from the prior day. This move lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.
Prior to today's trading, shares of the internet video service had gained 8.76% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.88% and the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from Netflix as it approaches its next earnings release, which is expected to be July 19, 2023. In that report, analysts expect Netflix to post earnings of $2.81 per share. This would mark a year-over-year decline of 12.19%. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 3.44% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $11.26 per share and revenue of $33.86 billion. These results would represent year-over-year changes of +13.17% and +7.09%, respectively.
It is also important to note the recent changes to analyst estimates for Netflix. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Netflix is currently a Zacks Rank #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 38.19. For comparison, its industry has an average Forward P/E of 13.74, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.61. 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 1.44 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 201, which puts it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.