Netflix (NFLX) closed at $368.97 in the latest trading session, marking a -1.02% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.71%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.87%.
Prior to today’s trading, shares of the internet video service had gained 1.59% over the past month. This has outpaced the Consumer Discretionary sector’s loss of 13.38% and the S&P 500’s loss of 9.13% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. On that day, NFLX is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 119.74%. Meanwhile, our latest consensus estimate is calling for revenue of $5.74 billion, up 26.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.06 per share and revenue of $24.37 billion, which would represent changes of +46.73% and +20.91%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NFLX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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, the Zacks Consensus EPS estimate has moved 0.31% higher. NFLX currently has a Zacks Rank of #2 (Buy).
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 61.5. For comparison, its industry has an average Forward P/E of 7.03, which means NFLX is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 2.05. 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. NFLX’s industry had an average PEG ratio of 0.59 as of yesterday’s close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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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