In the latest trading session, Netflix (NFLX) closed at $476.89, marking a -1.8% move from the previous day. This change lagged the S&P 500’s daily gain of 0.45%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.52%.
Prior to today’s trading, shares of the internet video service had gained 15.09% over the past month. This has outpaced the Consumer Discretionary sector’s gain of 0.88% and the S&P 500’s gain of 2.08% in that time.
NFLX will be looking to display strength as it nears its next earnings release, which is expected to be July 16, 2020. On that day, NFLX is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 205%. Our most recent consensus estimate is calling for quarterly revenue of $6.07 billion, up 23.37% from the year-ago period.
NFLX’s full-year Zacks Consensus Estimates are calling for earnings of $6.43 per share and revenue of $24.73 billion. These results would represent year-over-year changes of +55.69% and +22.69%, respectively.
Investors should also note any recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. NFLX is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 75.59. This represents a premium compared to its industry’s average Forward P/E of 7.19.
It is also worth noting that NFLX currently has a PEG ratio of 2.52. 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 0.62 at yesterday’s closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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