In the latest trading session, Netflix (NFLX - Free Report) closed at $369.43, marking a -0.12% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.18%.
Prior to today's trading, shares of the internet video service had gained 1.38% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.78% and lagged the S&P 500's gain of 1.71% 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 October 16, 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.
It is also important to note the recent changes to analyst estimates for NFLX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 138.46. This valuation marks a premium compared to its industry's average Forward P/E of 11.85.
Meanwhile, NFLX's PEG ratio is currently 4.62. 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. NFLX's industry had an average PEG ratio of 0.95 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 124, putting it in the top 49% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.