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 Netflix (NFLX) Dipped More Than Broader Market Today
Read MoreHide Full Article
Netflix (NFLX - Free Report) closed the most recent trading day at $688.96, moving -1.17% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.89% for the day. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 1.67%.
Coming into today, shares of the internet video service had gained 9.61% in the past month. In that same time, the Consumer Discretionary sector gained 2.07%, while the S&P 500 gained 2.17%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. On that day, Netflix is projected to report earnings of $5.07 per share, which would represent year-over-year growth of 35.92%. Alongside, our most recent consensus estimate is anticipating revenue of $9.76 billion, indicating a 14.31% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.08 per share and revenue of $38.68 billion, indicating changes of +58.6% and +14.71%, respectively, compared to the previous 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 36.53. This expresses a premium compared to the average Forward P/E of 10.48 of its industry.
Also, we should mention that NFLX has a PEG ratio of 1.43. 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 1.06.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Netflix (NFLX) Dipped More Than Broader Market Today
Netflix (NFLX - Free Report) closed the most recent trading day at $688.96, moving -1.17% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.89% for the day. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 1.67%.
Coming into today, shares of the internet video service had gained 9.61% in the past month. In that same time, the Consumer Discretionary sector gained 2.07%, while the S&P 500 gained 2.17%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. On that day, Netflix is projected to report earnings of $5.07 per share, which would represent year-over-year growth of 35.92%. Alongside, our most recent consensus estimate is anticipating revenue of $9.76 billion, indicating a 14.31% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.08 per share and revenue of $38.68 billion, indicating changes of +58.6% and +14.71%, respectively, compared to the previous 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 36.53. This expresses a premium compared to the average Forward P/E of 10.48 of its industry.
Also, we should mention that NFLX has a PEG ratio of 1.43. 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 1.06.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.