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Netflix (NFLX) Stock Sinks As Market Gains: Here's Why
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Netflix (NFLX - Free Report) ended the recent trading session at $696.50, demonstrating a -0.08% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.
Prior to today's trading, shares of the internet video service had gained 3.41% over the past month. This has lagged the Consumer Discretionary sector's gain of 9.35% and the S&P 500's gain of 3.67% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's upcoming EPS is projected at $5.07, signifying a 35.92% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $9.76 billion, up 14.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $19.08 per share and a revenue of $38.68 billion, demonstrating changes of +58.6% and +14.71%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Netflix is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Netflix currently has a Forward P/E ratio of 36.53. This expresses a premium compared to the average Forward P/E of 9.54 of its industry.
Also, we should mention that NFLX has a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated 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. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 26% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Netflix (NFLX) Stock Sinks As Market Gains: Here's Why
Netflix (NFLX - Free Report) ended the recent trading session at $696.50, demonstrating a -0.08% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.
Prior to today's trading, shares of the internet video service had gained 3.41% over the past month. This has lagged the Consumer Discretionary sector's gain of 9.35% and the S&P 500's gain of 3.67% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's upcoming EPS is projected at $5.07, signifying a 35.92% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $9.76 billion, up 14.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $19.08 per share and a revenue of $38.68 billion, demonstrating changes of +58.6% and +14.71%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Netflix is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Netflix currently has a Forward P/E ratio of 36.53. This expresses a premium compared to the average Forward P/E of 9.54 of its industry.
Also, we should mention that NFLX has a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated 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. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 26% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.