Netflix (NFLX) Stock Dips While Market Gains: Key Facts
Netflix (NFLX) ended the recent trading session at $607.39, demonstrating a -1% swing from the preceding day's closing price. This change lagged the S&P 500's 0.11% gain on the day. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Shares of the internet video service have appreciated by 2.86% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 0.92% and lagging the S&P 500's gain of 3.55%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on April 18, 2024. It is anticipated that the company will report an EPS of $4.49, marking a 55.9% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.25 billion, showing a 13.35% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.01 per share and revenue of $38.63 billion. These totals would mark changes of +41.4% and +14.54%, respectively, from last year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 36.06. This signifies a premium in comparison to the average Forward P/E of 9.51 for its industry.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.66. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 0.65 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 216, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
