In the latest close session, Netflix (NFLX) was up +1.19% at $1,218.95. This move outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the internet video service had gained 2.05% outpaced the Consumer Discretionary sector's gain of 1.41% and lagged the S&P 500's gain of 2.65%.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. It is anticipated that the company will report an EPS of $6.88, marking a 27.41% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $11.52 billion, up 17.3% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $26.06 per share and a revenue of $45.03 billion, representing changes of +31.42% and +15.47%, respectively, from the prior 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 business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Right now, Netflix possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 46.23 right now. This expresses a premium compared to the average Forward P/E of 29.52 of its industry.
Investors should also note that NFLX has a PEG ratio of 2.03 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.61 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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