In the latest trading session, Netflix (NFLX) closed at $237.05, marking a +0.08% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.19%.
Coming into today, shares of the internet video service had gained 3.16% in the past month. In that same time, the Consumer Discretionary sector lost 11.36%, while the S&P 500 lost 10.24%.
Netflix will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2022. In that report, analysts expect Netflix to post earnings of $2.12 per share. This would mark a year-over-year decline of 33.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.86 billion, up 5.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.04 per share and revenue of $31.68 billion, which would represent changes of -10.68% and +6.69%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.15% higher. Netflix currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 23.59 right now. For comparison, its industry has an average Forward P/E of 8.76, which means Netflix is trading at a premium to the group.
Also, we should mention that NFLX has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NFLX's industry had an average PEG ratio of 0.94 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 210, putting it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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