Coming into today, shares of the internet video service had lost 9.31% in the past month. In that same time, the Consumer Discretionary sector lost 1.68%, while the S&P 500 gained 2.31%.
The company is expected to report EPS of $3.04, up 91.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.32 billion, up 19.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.37 per share and revenue of $29.75 billion. These totals would mark changes of +70.56% and +19.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NFLX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 5.61% higher. NFLX is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NFLX currently has a Forward P/E ratio of 47.84. This valuation marks a premium compared to its industry’s average Forward P/E of 15.1.
Meanwhile, NFLX‘s PEG ratio is currently 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.42 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 172, which puts it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.