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Netflix (NFLX) Falls More Steeply Than Broader Market: What Investors Need to Know
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Netflix (NFLX - Free Report) closed the latest trading day at $486.88, indicating a -0.74% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq decreased by 0.56%.
Coming into today, shares of the internet video service had gained 3.49% in the past month. In that same time, the Consumer Discretionary sector gained 6.03%, while the S&P 500 gained 5.24%.
The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on January 23, 2024. The company's upcoming EPS is projected at $2.19, signifying a 1725% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.71 billion, reflecting a 10.96% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.08 per share and revenue of $33.6 billion, which would represent changes of +21.41% and +6.29%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 0.08% higher. As of now, Netflix holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 40.6. This valuation marks a premium compared to its industry's average Forward P/E of 14.73.
Investors should also note that NFLX has a PEG ratio of 1.91 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Broadcast Radio and Television was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Netflix (NFLX) Falls More Steeply Than Broader Market: What Investors Need to Know
Netflix (NFLX - Free Report) closed the latest trading day at $486.88, indicating a -0.74% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq decreased by 0.56%.
Coming into today, shares of the internet video service had gained 3.49% in the past month. In that same time, the Consumer Discretionary sector gained 6.03%, while the S&P 500 gained 5.24%.
The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on January 23, 2024. The company's upcoming EPS is projected at $2.19, signifying a 1725% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.71 billion, reflecting a 10.96% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.08 per share and revenue of $33.6 billion, which would represent changes of +21.41% and +6.29%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 0.08% higher. As of now, Netflix holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 40.6. This valuation marks a premium compared to its industry's average Forward P/E of 14.73.
Investors should also note that NFLX has a PEG ratio of 1.91 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Broadcast Radio and Television was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.