Netflix (NFLX - Free Report) closed the most recent trading day at $370.98, moving +0.86% from the previous trading session. This change outpaced the S&P 500's 0.44% loss on the day. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the internet video service had gained 8.77% over the past month, outpacing the Consumer Discretionary sector's gain of 2.16% and the S&P 500's gain of 3.59% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be October 15, 2018. On that day, NFLX is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 134.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.99 billion, up 33.65% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $2.67 per share and revenue of $15.87 billion. These results would represent year-over-year changes of +113.6% and +35.72%, respectively.
Investors should also note any recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 1.44% lower. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, NFLX currently has a Forward P/E ratio of 137.87. This represents a premium compared to its industry's average Forward P/E of 11.3.
It is also worth noting that NFLX currently has a PEG ratio of 4.6. 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. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.39 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 101, which puts it in the top 40% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.