Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Netflix (NFLX) closed at $497.89, marking a -0.75% move from the previous day. This change lagged the S&P 500's 0.08% loss on the day.
Coming into today, shares of the internet video service had lost 1.4% in the past month. In that same time, the Consumer Discretionary sector lost 0.86%, while the S&P 500 gained 0.73%.
NFLX will be looking to display strength as it nears its next earnings release. On that day, NFLX is projected to report earnings of $3.12 per share, which would represent year-over-year growth of 96.23%. Meanwhile, our latest consensus estimate is calling for revenue of $7.32 billion, up 19.02% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.39 per share and revenue of $29.72 billion, which would represent changes of +70.89% and +18.88%, respectively, from the prior year.
Any recent changes to analyst estimates for NFLX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.89% higher within the past month. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 48.28 right now. For comparison, its industry has an average Forward P/E of 13.64, which means NFLX is trading at a premium to the group.
Meanwhile, NFLX's PEG ratio is currently 1.48. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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, Inc. (NFLX) : Free Stock Analysis Report
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