Netflix (NFLX) Dips More Than Broader Markets: What You Should Know
Netflix (NFLX) closed at $491.90 in the latest trading session, marking a -1.6% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day.
Coming into today, shares of the internet video service had gained 2.24% in the past month. In that same time, the Consumer Discretionary sector gained 1.59%, while the S&P 500 gained 2.11%.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. On that day, NFLX is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 101.26%. Meanwhile, our latest consensus estimate is calling for revenue of $7.31 billion, up 18.88% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.43 per share and revenue of $29.7 billion, which would represent changes of +71.55% and +18.84%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NFLX. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.44% higher. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 47.95. This represents a premium compared to its industry's average Forward P/E of 14.4.
We can also see that NFLX currently has a PEG ratio of 1.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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