Netflix (NFLX) Dips More Than Broader Markets: What You Should Know

Netflix (NFLX) closed the most recent trading day at $189.14, moving -0.9% from the previous trading session. This change lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the internet video service had lost 2.22% in the past month. In that same time, the Consumer Discretionary sector lost 0.5%, while the S&P 500 lost 0.62%.

Netflix will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2022. On that day, Netflix is projected to report earnings of $2.95 per share, which would represent a year-over-year decline of 0.67%. Meanwhile, our latest consensus estimate is calling for revenue of $8.06 billion, up 9.81% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.93 per share and revenue of $32.48 billion, which would represent changes of -2.76% and +9.36%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. Netflix is currently a Zacks Rank #3 (Hold).

Digging into valuation, Netflix currently has a Forward P/E ratio of 17.47. This represents a premium compared to its industry's average Forward P/E of 7.07.

Meanwhile, NFLX's PEG ratio is currently 0.99. 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. NFLX's industry had an average PEG ratio of 0.96 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.

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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