In the latest trading session, Netflix (NFLX) closed at $76.77, marking a -1.89% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Coming into today, shares of the internet video service had gained 2.57% in the past month. In that same time, the Consumer Discretionary sector lost 2.32%, while the S&P 500 lost 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.82, reflecting a 38.98% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.88 billion, indicating a 11.9% growth compared to the corresponding quarter of the prior year.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.59 per share and revenue of $51.25 billion. These results would represent year-over-year changes of +41.9% and +13.42%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 21.78. This indicates a premium in contrast to its industry's Forward P/E of 11.02.
Investors should also note that NFLX has a PEG ratio of 1.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Broadcast Radio and Television industry stood at 0.96 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 102, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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).