Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know
Netflix (NFLX) closed at $503.38 in the latest trading session, marking a -0.24% move from the prior day. This change lagged the S&P 500's daily gain of 0.18%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the internet video service had gained 3.56% in the past month. In that same time, the Consumer Discretionary sector gained 16.99%, while the S&P 500 gained 12.12%.
Investors will be hoping for strength from NFLX as it approaches its next earnings release. The company is expected to report EPS of $1.37, up 5.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.60 billion, up 20.64% from the prior-year quarter.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $24.95 billion. These results would represent year-over-year changes of +51.57% and +23.76%, respectively.
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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 80.6. Its industry sports an average Forward P/E of 9.49, so we one might conclude that NFLX is trading at a premium comparatively.
Investors should also note that NFLX has a PEG ratio of 2.69 right now. 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 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 group has a Zacks Industry Rank of 89, putting it in the top 35% 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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