Netflix (NFLX) closed the most recent trading day at $1,263.25, moving +1.49% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.27%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.37%.
Prior to today's trading, shares of the internet video service had gained 2.17% lagged the Consumer Discretionary sector's gain of 6.14% and outpaced the S&P 500's gain of 1.85%.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company's upcoming EPS is projected at $6.88, signifying a 27.41% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.52 billion, up 17.3% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $26.06 per share and a revenue of $45.03 billion, demonstrating changes of +31.42% and +15.47%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Netflix holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 47.76. This denotes a premium relative to the industry average Forward P/E of 28.21.
One should further note that NFLX currently holds a PEG ratio of 2.1. 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. By the end of yesterday's trading, the Broadcast Radio and Television industry had an average PEG ratio of 1.65.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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