Netflix (NFLX) ended the latest trading session at $365.93, indicating a -1.98% swing from the previous day’s closing price. The stock’s performance was behind the S&P 500’s daily gain of 0.43%. On the other hand, the Dow Jones recorded gains of 0.19%, and the technology-focused Nasdaq rose by 0.71%.
Shares of the online video service saw a loss of 14.12% over the previous month, lagging the consumer sector’s discretionary loss of 2.8% and the S&P 500’s loss of 2.1%.
Market participants will be closely monitoring Netflix’s financial results in its next release. The company plans to announce its earnings on October 18, 2023. In this report, analysts expect Netflix to post earnings of $3.47 per share. This would represent year-on-year growth of 11.94%. Meanwhile, our latest estimate projects revenues to reach $8.53 billion, indicating an increase of 7.65% compared to the same quarter last year.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $11.91 per share and revenue of $33.68 billion, which would represent changes of +19.7% and +6.54%, respectively, from the prior year.
Investors may also notice recent changes in analyst estimates for Netflix. Such recent adjustments usually indicate a changing landscape of near-term business trends. As a result, upbeat estimate changes indicate analysts’ positive expectations about the health and profitability of a company’s business.
Empirical research suggests that these estimate revisions have a direct relationship to impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, as proven by outside audits, with #1 ranked stocks providing an average annual return of +25% since 1988. During Last month, there was a 0.08% decrease in the Zacks Consensus EPS estimate. Netflix currently sports a Zacks Rank of #4 (Sell).
In terms of valuation, Netflix is currently trading at a forward P/E ratio of 31.35. This indicates a premium in contrast to the industry’s Forward P/E of 12.71.
One should also note that NFLX currently carries a PEG ratio of 1.39. 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 radio and television broadcaster maintained an average PEG ratio of 1.39 at yesterday’s closing price.
The radio and television broadcasting industry is part of the consumer discretionary sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank evaluates the strength of our specific industry groups by calculating the average Zacks Rank of the individual stocks combined into the groups. Our research shows that the top 50% of ranked industries outperform the bottom half by a factor of 2 to 1.
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Netflix, Inc. (NFLX): Free Stock Analysis Report
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