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Netflix (NFLX) Stock Slides as Market Rises: Facts to Know Before You Trade
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Netflix (NFLX - Free Report) ended the recent trading session at $673.62, demonstrating a -0.27% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.45%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.84%.
Heading into today, shares of the internet video service had gained 6.68% over the past month, outpacing the Consumer Discretionary sector's gain of 3.49% and the S&P 500's gain of 2.54% in that time.
Investors will be eagerly watching for 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%. 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 pay attention to any latest changes in 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Netflix is currently a Zacks Rank #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 35.39. This expresses a premium compared to the average Forward P/E of 8.69 of its industry.
We can also see that NFLX currently has 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. NFLX's industry had an average PEG ratio of 0.83 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Netflix (NFLX) Stock Slides as Market Rises: Facts to Know Before You Trade
Netflix (NFLX - Free Report) ended the recent trading session at $673.62, demonstrating a -0.27% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.45%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.84%.
Heading into today, shares of the internet video service had gained 6.68% over the past month, outpacing the Consumer Discretionary sector's gain of 3.49% and the S&P 500's gain of 2.54% in that time.
Investors will be eagerly watching for 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%. 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 pay attention to any latest changes in 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Netflix is currently a Zacks Rank #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 35.39. This expresses a premium compared to the average Forward P/E of 8.69 of its industry.
We can also see that NFLX currently has 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. NFLX's industry had an average PEG ratio of 0.83 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.