In the latest trading session, Netflix (NFLX) closed at $502.78, marking a +1.95% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 1.44%.
Heading into today, shares of the internet video service had gained 13.62% over the past month, outpacing the Consumer Discretionary sector's loss of 3.56% and the S&P 500's loss of 1.32% 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. The company is expected to report EPS of $1.83, up 205% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.07 billion, up 23.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.43 per share and revenue of $24.73 billion. These totals would mark changes of +55.69% and +22.69%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NFLX. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.04% higher. NFLX currently has a Zacks Rank of #3 (Hold).
Investors should also note NFLX's current valuation metrics, including its Forward P/E ratio of 76.76. This represents a premium compared to its industry's average Forward P/E of 7.03.
Meanwhile, NFLX's PEG ratio is currently 2.56. 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. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.62 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 145, which puts it in the bottom 43% 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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