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Why the Market Dipped But Netflix (NFLX) Gained Today
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In the latest trading session, Netflix (NFLX - Free Report) closed at $679.68, marking a +0.65% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.3%.
The internet video service's stock has climbed by 10.79% in the past month, exceeding the Consumer Discretionary sector's gain of 5.25% and the S&P 500's gain of 3.64%.
The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. In that report, analysts expect Netflix to post earnings of $5.07 per share. This would mark year-over-year growth of 35.92%. In the meantime, our current consensus estimate forecasts the revenue to be $9.76 billion, indicating a 14.31% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.08 per share and revenue of $38.68 billion, which would represent changes of +58.6% and +14.71%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Netflix is currently a Zacks Rank #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 35.39. This represents a premium compared to its industry's average Forward P/E of 10.09.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 0.88.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Why the Market Dipped But Netflix (NFLX) Gained Today
In the latest trading session, Netflix (NFLX - Free Report) closed at $679.68, marking a +0.65% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.3%.
The internet video service's stock has climbed by 10.79% in the past month, exceeding the Consumer Discretionary sector's gain of 5.25% and the S&P 500's gain of 3.64%.
The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. In that report, analysts expect Netflix to post earnings of $5.07 per share. This would mark year-over-year growth of 35.92%. In the meantime, our current consensus estimate forecasts the revenue to be $9.76 billion, indicating a 14.31% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.08 per share and revenue of $38.68 billion, which would represent changes of +58.6% and +14.71%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Netflix is currently a Zacks Rank #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 35.39. This represents a premium compared to its industry's average Forward P/E of 10.09.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 0.88.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.