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Netflix (NFLX) Stock Falls Amid Market Uptick: What Investors Need to Know
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Netflix (NFLX - Free Report) closed the latest trading day at $631.62, indicating a -0.34% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.17%.
Shares of the internet video service witnessed a gain of 6.17% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 1.06% and the S&P 500's gain of 3.2%.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.70, reflecting a 42.86% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.53 billion, up 16.36% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $18.31 per share and a revenue of $38.7 billion, demonstrating changes of +52.2% and +14.75%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Netflix is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 34.61. This expresses a premium compared to the average Forward P/E of 8.36 of its industry.
It is also worth noting that NFLX currently has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 0.9.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 27% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Netflix (NFLX) Stock Falls Amid Market Uptick: What Investors Need to Know
Netflix (NFLX - Free Report) closed the latest trading day at $631.62, indicating a -0.34% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.17%.
Shares of the internet video service witnessed a gain of 6.17% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 1.06% and the S&P 500's gain of 3.2%.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.70, reflecting a 42.86% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.53 billion, up 16.36% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $18.31 per share and a revenue of $38.7 billion, demonstrating changes of +52.2% and +14.75%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Netflix is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 34.61. This expresses a premium compared to the average Forward P/E of 8.36 of its industry.
It is also worth noting that NFLX currently has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 0.9.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 27% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.