Netflix (NFLX) Gains As Market Dips: What You Should Know

In the latest trading session, Netflix (NFLX) closed at $569.19, marking a +0.53% move from the previous day. This move outpaced the S&P 500's daily loss of 0.14%.

Coming into today, shares of the internet video service had gained 9.91% in the past month. In that same time, the Consumer Discretionary sector gained 2.24%, while the S&P 500 gained 3.13%.

NFLX will be looking to display strength as it nears its next earnings release. In that report, analysts expect NFLX to post earnings of $2.57 per share. This would mark year-over-year growth of 47.7%. Our most recent consensus estimate is calling for quarterly revenue of $7.48 billion, up 16.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.38 per share and revenue of $29.68 billion, which would represent changes of +70.72% and +18.74%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NFLX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 0.02% higher. 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 54.56. Its industry sports an average Forward P/E of 16.2, so we one might conclude that NFLX is trading at a premium comparatively.

Investors should also note that NFLX has a PEG ratio of 1.78 right now. 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 was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
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