In the last trading session, Netflix (NFLX) closed at $ 497.89, a -0.75% move from the previous day. That change fell short of the S&P 500’s 0.08% loss for the day.
To date, Internet video service stocks were down 1.4% over the past month. Over the same period, the consumer discretionary sector lost 0.86% while the S&P 500 rose 0.73%.
NFLX will look to show strength as it nears its next earnings release. On that day, NFLX is expected to post earnings of $ 3.12 per share, up 96.23% year over year. Our latest consensus estimate was for revenue of $ 7.32 billion, up 19.02% from the year-ago quarter.
For the full year, our Zacks Consensus estimates project earnings per share of $ 10.39 and revenue of $ 29.72 billion, up 70.89% and 18.88% from last year, respectively.
Recent changes in analyst estimates for NFLX should also be noted by investors. These recent revisions tend to reflect developments in short term business trends. As such, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.
Our research shows that these changes in estimates correlate directly with short-term stock prices. Investors can take advantage of this using the Zacks range. This model takes these changes in estimates into account and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive, externally verified track record of outperformance, with the # 1 stocks posting average annual returns since 1988 of + 25% Zacks Consensus EPS estimate rose 3.89% last month. NFLX currently has a Zacks rank of # 3 (Hold).
Valuation is also important, so investors should note that NFLX currently has a Forward P / E ratio of 48.28. For comparison, the industry has an average forward P / E of 13.64, which means NFLX is trading at a premium to the group.
The PEG ratio of NFLX is now 1.48. This metric is used in a manner similar to the famous P / E ratio, but the P / E ratio also takes into account the stock’s expected earnings growth rate. At yesterday’s closing price, radio and television had an average PEG rate of 1.29.
The radio and television industry is part of the consumer discretionary sector. This industry currently has a Zacks industry ranking of 119, making it one of the top 47% of all over 250 industries.
The Zacks Industry Rank ranks best to worst in terms of the average Zacks rank of each company in each of these sectors. Our research shows that the industries with the top 50% outperform the bottom half by a factor of 2 to 1.
Use Zacks.com to keep track of NFLX in the upcoming trading sessions.
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