In the latest trading session, Netflix (NFLX) closed at $338.69, marking a -0.07% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.15%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the internet video service had gained 11.41% over the past month. This has outpaced the Consumer Discretionary sector's gain of 3.86% and the S&P 500's gain of 3.88% 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 January 21, 2020. On that day, NFLX is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $5.44 billion, up 30.02% from the year-ago period.
Any recent changes to analyst estimates for NFLX should also be noted by investors. 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.
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 0.5% lower. 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 62.19. Its industry sports an average Forward P/E of 9.74, so we one might conclude that NFLX is trading at a premium comparatively.
Also, we should mention that NFLX has a PEG ratio of 2.07. 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. NFLX's industry had an average PEG ratio of 0.79 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 105, which puts it in the top 42% 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.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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