Netflix (NFLX - Free Report) closed the most recent trading day at $271.20, moving +1.32% from the previous trading session. This move outpaced the S&P 500's daily loss of 2.48%. Elsewhere, the Dow lost 2.83%, while the tech-heavy Nasdaq lost 3.04%.
Prior to today's trading, shares of the internet video service had lost 2.79% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 8.57% and the S&P 500's loss of 8.82% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be January 17, 2019. The company is expected to report EPS of $0.25, down 39.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.21 billion, up 28.05% from the prior-year quarter.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 1.42% lower. NFLX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that NFLX has a Forward P/E ratio of 65.85 right now. This represents a premium compared to its industry's average Forward P/E of 12.52.
Investors should also note that NFLX has a PEG ratio of 2.19 right now. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.84 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 47, putting it in the top 18% 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.