Netflix (NFLX - Free Report) closed the most recent trading day at $469.96, moving -0.05% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.88%, and the Nasdaq, a tech-heavy index, lost 1.07%.
Heading into today, shares of the internet video service had lost 5.56% over the past month, lagging the Consumer Discretionary sector's gain of 1.57% and the S&P 500's loss of 0.59% in that time.
Investors will be hoping for strength from NFLX as it approaches its next earnings release. In that report, analysts expect NFLX to post earnings of $2.11 per share. This would mark year-over-year growth of 43.54%. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, up 21.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.30 per share and revenue of $24.83 billion. These totals would mark changes of +52.54% and +23.18%, respectively, from last year.
Any recent changes to analyst estimates for NFLX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. NFLX is currently a Zacks Rank #3 (Hold).
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 74.66. This represents a premium compared to its industry's average Forward P/E of 11.71.
We can also see that NFLX currently has a PEG ratio of 2.49. 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. The Broadcast Radio and Television was holding an average PEG ratio of 0.69 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.