We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Read MoreHide Full Article
Netflix (NFLX - Free Report) closed the most recent trading day at $988.39, moving -1.47% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.21%.
The internet video service's shares have seen an increase of 2.61% over the last month, not keeping up with the Consumer Discretionary sector's gain of 10.12% and outstripping the S&P 500's loss of 0.47%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company is predicted to post an EPS of $5.73, indicating an 8.52% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.53 billion, reflecting a 12.36% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $24.58 per share and revenue of $44.43 billion, indicating changes of +23.95% and +13.92%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.1% higher. Netflix is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Netflix currently has a Forward P/E ratio of 40.82. This represents a premium compared to its industry's average Forward P/E of 11.7.
Also, we should mention that NFLX has a PEG ratio of 2.08. 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 industry currently had an average PEG ratio of 1.26 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 67, which puts it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Netflix (NFLX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Netflix (NFLX - Free Report) closed the most recent trading day at $988.39, moving -1.47% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.21%.
The internet video service's shares have seen an increase of 2.61% over the last month, not keeping up with the Consumer Discretionary sector's gain of 10.12% and outstripping the S&P 500's loss of 0.47%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company is predicted to post an EPS of $5.73, indicating an 8.52% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.53 billion, reflecting a 12.36% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $24.58 per share and revenue of $44.43 billion, indicating changes of +23.95% and +13.92%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.1% higher. Netflix is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Netflix currently has a Forward P/E ratio of 40.82. This represents a premium compared to its industry's average Forward P/E of 11.7.
Also, we should mention that NFLX has a PEG ratio of 2.08. 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 industry currently had an average PEG ratio of 1.26 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 67, which puts it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.