In the latest trading session, Netflix (NFLX - Free Report) closed at $361.20, marking a -1.18% move from the previous day. This change lagged the S&P 500's 0.11% gain on the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.19%.
Heading into today, shares of the internet video service had gained 3.66% over the past month, outpacing the Consumer Discretionary sector's gain of 2.41% and lagging the S&P 500's gain of 3.84% 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 April 16, 2019. On that day, NFLX is projected to report earnings of $0.57 per share, which would represent a year-over-year decline of 10.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.49 billion, up 21.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.98 per share and revenue of $20.20 billion. These totals would mark changes of +48.51% and +27.92%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.38% lower. NFLX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 91.77. This represents a premium compared to its industry's average Forward P/E of 17.13.
Also, we should mention that NFLX has a PEG ratio of 3.06. 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 industry currently had an average PEG ratio of 1.12 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 61, which puts it in the top 24% 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.