Netflix (NFLX) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Netflix (NFLX) closed at $618.20, marking a -1.62% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.15% for the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.32%.

Shares of the internet video service have appreciated by 4.57% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 0.89% and the S&P 500's gain of 1.65%.

The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on April 18, 2024. The company is forecasted to report an EPS of $4.49, showcasing a 55.9% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.25 billion, up 13.35% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.01 per share and a revenue of $38.63 billion, indicating changes of +41.4% and +14.54%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Netflix is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Netflix is holding a Forward P/E ratio of 36.94. This indicates a premium in contrast to its industry's Forward P/E of 9.53.

One should further note that NFLX currently holds a PEG ratio of 1.7. 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. NFLX's industry had an average PEG ratio of 0.67 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 9% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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