Netflix (NFLX) closed at $78.67 in the latest trading session, marking a +2.17% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The stock of internet video service has fallen by 7.83% in the past month, lagging the Consumer Discretionary sector's loss of 1.9% and the S&P 500's loss of 1%.
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 $0.76, marking a 15.15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.17 billion, up 15.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $51.19 billion, which would represent changes of +23.32% and +13.3%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.66% decrease. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 24.64. This denotes a premium relative to the industry average Forward P/E of 10.89.
We can also see that NFLX currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.14 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 67, putting it in the top 28% 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.
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Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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