In the latest trading session, Netflix (NFLX) closed at $81.57, marking a -1.29% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.26%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.97%.
Shares of the internet video service have depreciated by 3.29% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 1.2%, and the S&P 500's gain of 0.23%.
The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. 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.
For the full year, the Zacks Consensus Estimates project earnings of $3.6 per share and a revenue of $51.41 billion, demonstrating changes of +42.29% and +13.77%, respectively, from the preceding year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Netflix is presently trading at a Forward P/E ratio of 22.96. This indicates a premium in contrast to its industry's Forward P/E of 14.6.
Meanwhile, NFLX's PEG ratio is currently 1.05. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 31% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Netflix, Inc. (NFLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).