Netflix (NFLX) closed at $103.96 in the latest trading session, marking a -4.93% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.17%.
Shares of the internet video service witnessed a gain of 0.05% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 0.3%, and the S&P 500's loss of 0.06%.
The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. In that report, analysts expect Netflix to post earnings of $0.54 per share. This would mark year-over-year growth of 25.58%. Meanwhile, our latest consensus estimate is calling for revenue of $11.97 billion, up 16.78% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.53 per share and a revenue of $45.1 billion, signifying shifts of +27.78% and +15.63%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. At present, Netflix boasts a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 43.3. Its industry sports an average Forward P/E of 15.01, so one might conclude that Netflix is trading at a premium comparatively.
We can also see that NFLX currently has a PEG ratio of 1.62. 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 1.25 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
