In the latest trading session, Netflix (NFLX) closed at $371.06, marking a +0.5% move from the previous day. The stock outpaced the S&P 500’s daily loss of 0.17%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the internet video service had gained 4.83% over the past month, outpacing the Consumer Discretionary sector’s gain of 2.22% and the S&P 500’s gain of 3.07% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. This is expected to be July 17, 2019. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.93 billion, up 26.11% from the year-ago period.
NFLX’s full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $20.18 billion. These results would represent year-over-year changes of +24.63% and +27.78%, respectively.
Any recent changes to analyst estimates for NFLX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 0.33% higher within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 110.4. For comparison, its industry has an average Forward P/E of 14.73, which means NFLX is trading at a premium to the group.
We can also see that NFLX currently has a PEG ratio of 3.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.17 based on yesterday’s closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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