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Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed at $377.59 in the latest trading session, marking a -0.44% move from the prior day. This change lagged the S&P 500's 0.02% gain on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the internet video service had lost 11.8% over the past month, lagging the Consumer Discretionary sector's loss of 4.13% and the S&P 500's loss of 2.86% in that time.
Netflix will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2023. 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.91 per share and revenue of $33.72 billion. These totals would mark changes of +19.7% and +6.67%, respectively, from last year.
It is also important to note the 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. Netflix currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 31.84. For comparison, its industry has an average Forward P/E of 12.25, which means Netflix is trading at a premium to the group.
It is also worth noting that NFLX currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.39 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% 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) Stock Sinks As Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed at $377.59 in the latest trading session, marking a -0.44% move from the prior day. This change lagged the S&P 500's 0.02% gain on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the internet video service had lost 11.8% over the past month, lagging the Consumer Discretionary sector's loss of 4.13% and the S&P 500's loss of 2.86% in that time.
Netflix will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2023. 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.91 per share and revenue of $33.72 billion. These totals would mark changes of +19.7% and +6.67%, respectively, from last year.
It is also important to note the 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. Netflix currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Netflix currently has a Forward P/E ratio of 31.84. For comparison, its industry has an average Forward P/E of 12.25, which means Netflix is trading at a premium to the group.
It is also worth noting that NFLX currently has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.39 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% 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.