In the latest trading session, Netflix (NFLX) closed at $92.71, marking a -4.14% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.68% for the day. Elsewhere, the Dow saw an upswing of 1.05%, while the tech-heavy Nasdaq appreciated by 0.33%.
Heading into today, shares of the internet video service had lost 14.9% over the past month, lagging the Consumer Discretionary sector's loss of 1.26% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. On that day, Netflix is projected to report earnings of $0.54 per share, which would represent 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.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $2.53 per share and revenue of $45.1 billion. These results would represent year-over-year changes of +27.78% and +15.63%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. Netflix currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 38.25. This signifies a premium in comparison to the average Forward P/E of 15.32 for its industry.
Also, we should mention that NFLX has a PEG ratio of 1.43. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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