In the latest trading session, Netflix (NFLX) closed at $184.06, marking a -0.98% move from the previous day. This change lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the internet video service had lost 6.41% over the past month, outpacing the Consumer Discretionary sector's loss of 8.95% and the S&P 500's loss of 6.59% 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 July 19, 2022. The company is expected to report EPS of $2.91, down 2.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.04 billion, up 9.46% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $10.75 per share and revenue of $32.36 billion. These results would represent year-over-year changes of -4.36% and +8.97%, respectively.
Investors should also note any recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.75% lower. Netflix is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 17.29. Its industry sports an average Forward P/E of 7.03, so we one might conclude that Netflix is trading at a premium comparatively.
It is also worth noting that NFLX currently has a PEG ratio of 1.21. 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 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 87, putting it in the top 35% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research