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.
Why the Market Dipped But Netflix (NFLX) Gained Today
Read MoreHide Full Article
In the latest trading session, Netflix (NFLX - Free Report) closed at $474.67, marking a +0.94% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the internet video service witnessed a gain of 5.27% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.07% and the S&P 500's gain of 2.56%.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2024. In that report, analysts expect Netflix to post earnings of $2.19 per share. This would mark year-over-year growth of 1725%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.71 billion, up 10.96% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. At present, Netflix boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Netflix is currently exchanging hands at a Forward P/E ratio of 29.41. For comparison, its industry has an average Forward P/E of 9, which means Netflix is trading at a premium to the group.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.38. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 0.67 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 30% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why the Market Dipped But Netflix (NFLX) Gained Today
In the latest trading session, Netflix (NFLX - Free Report) closed at $474.67, marking a +0.94% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the internet video service witnessed a gain of 5.27% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.07% and the S&P 500's gain of 2.56%.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2024. In that report, analysts expect Netflix to post earnings of $2.19 per share. This would mark year-over-year growth of 1725%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.71 billion, up 10.96% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. At present, Netflix boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Netflix is currently exchanging hands at a Forward P/E ratio of 29.41. For comparison, its industry has an average Forward P/E of 9, which means Netflix is trading at a premium to the group.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.38. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 0.67 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 30% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.