In the latest close session, Netflix (NFLX) was down 1.4% at $96.94. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq added 0.01%.
The stock of internet video service has risen by 20.68% in the past month, leading the Consumer Discretionary sector's loss of 1.03% and the S&P 500's loss of 2.26%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. In that report, analysts expect Netflix to post earnings of $0.76 per share. This would mark year-over-year growth of 15.15%. At the same time, our most recent consensus estimate is projecting a revenue of $12.17 billion, reflecting a 15.41% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.14 per share and a revenue of $51.23 billion, indicating changes of +24.11% and +13.38%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 moved 0.37% higher. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 31.35. This signifies a premium in comparison to the average Forward P/E of 11.81 for its industry.
One should further note that NFLX currently holds a PEG ratio of 1.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 4.49.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 40% echelons 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.
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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