Netflix (NFLX) closed the most recent trading day at $240.02, moving +1.39% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.15%, while the tech-heavy Nasdaq added 0.37%.
Heading into today, shares of the internet video service had gained 3.39% over the past month, outpacing the Consumer Discretionary sector's loss of 6.96% and the S&P 500's loss of 3.51% in that time.
Wall Street will be looking for positivity from Netflix as it approaches its next earnings report date. This 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.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.03 per share and revenue of $31.68 billion. These results would represent year-over-year changes of -10.77% and +6.69%, respectively.
It is also important to note the recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. 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. 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 0.07% higher. Netflix is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Netflix is holding a Forward P/E ratio of 23.59. This valuation marks a premium compared to its industry's average Forward P/E of 8.42.
We can also see that NFLX currently has a PEG ratio of 1.21. 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 0.94 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 230, putting it in the bottom 9% 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.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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