The most recent trading day ended with Netflix stock closing at $240.02, reflecting a movement of +1.39% from the previous trading session. The stock’s daily loss was more than the daily loss of 1.03% seen by the S&P 500. Aside from that, the Dow fell by 1.15 percent, while the tech-heavy Nasdaq gained 0.37 percent.
Shares of the online video provider had risen 3.39% heading into today, beating the loss of 6.96% that the Consumer Discretionary sector had seen over the prior month and the loss of 3.51% that the S&P 500 had experienced over the same period.
Netflix Stock Performance
As the time draws near for Netflix stock to announce its following results, Wall Street will be searching for positive signs from the company. It is predicted that this will occur on October 18th, 2022. According to the findings of that survey, market experts anticipate Netflix stock earnings of $2.12 per share. This would represent a decrease of 33.54% as compared to the previous year. Meanwhile, the Zacks Consensus Estimate for revenue predicts that net sales will come in at $7.86 billion, an increase of 5.02% from the same time period the previous year.
The Zacks Consensus Estimate for NFLX’s annual profits is now $10.03 per share. The company is expected to bring in revenue of $31.68 billion. These figures would reflect decreases of -10.77% and +6.69%, respectively, compared to the previous year’s totals.
Considering the shifts in analyst expectations for Netflix Inc (NASDAQ:NFLX) is also essential. More recent revisions tend to reflect the most recent near-term company trends. As a consequence of this, we can view favorable estimate revisions as a positive indicator for the business prospects of the firm.
We feel that these estimates are closely tied to near-term stock movements based on the study that we have conducted. This proprietary methodology gives an actionable grading system that considers changes in the estimates provided.
The Zacks Rank goes from number one (a “Strong Buy”) to number five (Strong Sell). It has a fantastic record of achievement that an independent third party has audited. Right now, Netflix has a Zacks Rank of 3, which indicates that investors should Hold their shares.
When considering the company’s current valuation, Netflix has a Forward P/E ratio of 23.59. This valuation represents an increase when contrasted with the average Forward P/E of 8.42 for its industry.
In addition, we can observe that NFLX has a PEG ratio of 1.21. The PEG ratio is comparable to the more common P/E ratio. Still, unlike the P/E ratio, this statistic also considers the firm’s anticipated earnings growth rate. As of the market’s closing the day before yesterday, the average PEG ratio for NFLX’s industry was 0.94.
The Broadcast Radio and Television industry falls under Consumer Discretionary goods and services category. This organization is ranked 230 out of more than 250 different industries by Zacks, which places it in the lowest nine percent of all of those industries.
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Author Valerie Remorosa 
