Netflix (NFLX) closed at $349.19 in the latest trading session, marking a -1.58% move from the prior day. This move lagged the S&P 500’s daily loss of 0.69%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Heading into today, shares of the internet video service had lost 4.25% over the past month, outpacing the Consumer Discretionary sector’s loss of 5.23% and the S&P 500’s loss of 4.53% in that time.
NFLX will be looking to display strength as it nears its next earnings release. On that day, NFLX is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 34.12%. Our most recent consensus estimate is calling for quarterly revenue of $4.93 billion, up 26.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.31 per share and revenue of $20.18 billion. These totals would mark changes of +23.51% and +27.78%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NFLX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. NFLX currently has a Zacks Rank of #3 (Hold).
Investors should also note NFLX’s current valuation metrics, including its Forward P/E ratio of 107.32. Its industry sports an average Forward P/E of 14.9, so we one might conclude that NFLX is trading at a premium comparatively.
Meanwhile, NFLX’s PEG ratio is currently 3.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. NFLX’s industry had an average PEG ratio of 1.17 as of yesterday’s close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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