Netflix (NFLX - Free Report) closed at $315.47 in the latest trading session, marking a -1.34% move from the prior day. This move was narrower than the S&P 500's daily loss of 5.18%. Elsewhere, the Dow lost 6.3%, while the tech-heavy Nasdaq lost 4.7%.
Heading into today, shares of the internet video service had lost 17.54% over the past month, outpacing the Consumer Discretionary sector's loss of 32.38% and the S&P 500's loss of 24.68% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. The company is expected to report EPS of $1.66, up 118.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 26.97% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $6.13 per share and revenue of $24.38 billion. These results would represent year-over-year changes of +48.43% and +20.97%, respectively.
It is also important to note the recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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% higher. NFLX is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, NFLX currently has a Forward P/E ratio of 52.17. This represents a premium compared to its industry's average Forward P/E of 5.27.
It is also worth noting that NFLX currently has a PEG ratio of 1.74. 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 was holding an average PEG ratio of 0.45 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.