Netflix (NFLX - Free Report) closed the most recent trading day at $310.84, moving -1.46% from the previous trading session. This change lagged the S&P 500's 0.63% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.64%.
Heading into today, shares of the internet video service had lost 9.64% over the past month, lagging the Consumer Discretionary sector's loss of 3.01% and the S&P 500's loss of 4.95% 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 January 28, 2019. The company is expected to report EPS of $0.24, down 41.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.20 billion, up 27.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $15.84 billion. These totals would mark changes of +108.8% and +35.49%, respectively, from last year.
Any recent changes to analyst estimates for NFLX should also be noted by investors. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.43% lower within the past month. NFLX is currently a Zacks Rank #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 120.92. This represents a premium compared to its industry's average Forward P/E of 15.16.
It is also worth noting that NFLX currently has a PEG ratio of 4.03. 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. NFLX's industry had an average PEG ratio of 0.92 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.