Netflix (NFLX) closed the most recent trading day at $87.68, moving -1.04% from the previous trading session. This change lagged the S&P 500's daily gain of 0.61%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 1.19%.
Heading into today, shares of the internet video service had lost 3.03% over the past month, lagging the Consumer Discretionary sector's loss of 2.29% and the S&P 500's gain of 4.44%.
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 $0.79 per share, which would represent year-over-year growth of 9.72%. Alongside, our most recent consensus estimate is anticipating revenue of $12.57 billion, indicating a 13.48% upward movement from the same quarter last year.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.6 per share and revenue of $51.41 billion. These results would represent year-over-year changes of +42.29% and +13.77%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, there's been a 1.92% rise in the Zacks Consensus EPS estimate. Netflix is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Netflix is presently being traded at a Forward P/E ratio of 24.62. This signifies a premium in comparison to the average Forward P/E of 14.27 for its industry.
It's also important to note that NFLX currently trades at a PEG ratio of 1.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 1.13.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>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 Report
This article originally published on Zacks Investment Research (zacks.com).