Netflix (NFLX - Free Report) closed the most recent trading day at $346.46, moving +1.62% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.37%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Coming into today, shares of the internet video service had lost 1.85% in the past month. In that same time, the Consumer Discretionary sector lost 0.54%, while the S&P 500 gained 1.96%.
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%. Our most recent consensus estimate is calling for quarterly revenue of $3.99 billion, up 33.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.67 per share and revenue of $15.87 billion. These totals would mark changes of +113.6% and +35.72%, respectively, from last 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.19% lower. 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 127.81. Its industry sports an average Forward P/E of 11.75, so we one might conclude that NFLX is trading at a premium comparatively.
Meanwhile, NFLX's PEG ratio is currently 4.26. 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. The Broadcast Radio and Television was holding an average PEG ratio of 0.93 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.