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Netflix (NFLX) Stock Moves -0.89%: What You Should Know
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Netflix (NFLX - Free Report) closed at $396.94 in the latest trading session, marking a -0.89% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.
Coming into today, shares of the internet video service had lost 0.62% in the past month. In that same time, the Consumer Discretionary sector lost 3.96%, while the S&P 500 gained 0.54%.
Investors will be hoping for strength from Netflix as it approaches its next earnings release. The company is expected to report EPS of $3.49, up 12.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.53 billion, up 7.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.92 per share and revenue of $33.73 billion, which would represent changes of +19.8% and +6.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.22% lower within the past month. Netflix currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 33.61 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.52.
Investors should also note that NFLX has a PEG ratio of 1.33 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 industry currently had an average PEG ratio of 1.53 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 166, putting it in the bottom 35% 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) Stock Moves -0.89%: What You Should Know
Netflix (NFLX - Free Report) closed at $396.94 in the latest trading session, marking a -0.89% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.
Coming into today, shares of the internet video service had lost 0.62% in the past month. In that same time, the Consumer Discretionary sector lost 3.96%, while the S&P 500 gained 0.54%.
Investors will be hoping for strength from Netflix as it approaches its next earnings release. The company is expected to report EPS of $3.49, up 12.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.53 billion, up 7.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.92 per share and revenue of $33.73 billion, which would represent changes of +19.8% and +6.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.22% lower within the past month. Netflix currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 33.61 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.52.
Investors should also note that NFLX has a PEG ratio of 1.33 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 industry currently had an average PEG ratio of 1.53 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 166, putting it in the bottom 35% 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.