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Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
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Netflix (NFLX - Free Report) closed at $339.50 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 0.86% gain on the day. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.37%.
Heading into today, shares of the internet video service had gained 27.27% over the past month, outpacing the Consumer Discretionary sector's gain of 9.37% and the S&P 500's gain of 8.11% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be April 15, 2019. On that day, NFLX is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 9.38%. Meanwhile, our latest consensus estimate is calling for revenue of $4.49 billion, up 21.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $20.12 billion, which would represent changes of +50% and +27.38%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 1.04% lower within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 84.64. This valuation marks a premium compared to its industry's average Forward P/E of 14.13.
We can also see that NFLX currently has a PEG ratio of 2.82. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.95 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
Netflix (NFLX - Free Report) closed at $339.50 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 0.86% gain on the day. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.37%.
Heading into today, shares of the internet video service had gained 27.27% over the past month, outpacing the Consumer Discretionary sector's gain of 9.37% and the S&P 500's gain of 8.11% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be April 15, 2019. On that day, NFLX is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 9.38%. Meanwhile, our latest consensus estimate is calling for revenue of $4.49 billion, up 21.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $20.12 billion, which would represent changes of +50% and +27.38%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 1.04% lower within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 84.64. This valuation marks a premium compared to its industry's average Forward P/E of 14.13.
We can also see that NFLX currently has a PEG ratio of 2.82. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.95 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.