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Netflix (NFLX) Stock Dips While Market Gains: Key Facts
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The most recent trading session ended with Netflix (NFLX - Free Report) standing at $478.33, reflecting a -0.78% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
The internet video service's shares have seen an increase of 4.12% over the last month, surpassing the Consumer Discretionary sector's gain of 1.02% and the S&P 500's gain of 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on January 23, 2024. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 1725% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.71 billion, showing a 10.96% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% upward. Netflix is currently a Zacks Rank #2 (Buy).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 30.15. This indicates a premium in contrast to its industry's Forward P/E of 8.22.
Investors should also note that NFLX has a PEG ratio of 1.42 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Broadcast Radio and Television industry stood at 0.7 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 17% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Netflix (NFLX) Stock Dips While Market Gains: Key Facts
The most recent trading session ended with Netflix (NFLX - Free Report) standing at $478.33, reflecting a -0.78% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
The internet video service's shares have seen an increase of 4.12% over the last month, surpassing the Consumer Discretionary sector's gain of 1.02% and the S&P 500's gain of 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on January 23, 2024. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 1725% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.71 billion, showing a 10.96% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% upward. Netflix is currently a Zacks Rank #2 (Buy).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 30.15. This indicates a premium in contrast to its industry's Forward P/E of 8.22.
Investors should also note that NFLX has a PEG ratio of 1.42 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Broadcast Radio and Television industry stood at 0.7 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 17% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.