Netflix (NFLX) closed the most recent trading day at $988.39, moving -1.47% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.21%.

The internet video service's shares have seen an increase of 2.61% over the last month, not keeping up with the Consumer Discretionary sector's gain of 10.12% and outstripping the S&P 500's loss of 0.47%.

Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company is predicted to post an EPS of $5.73, indicating an 8.52% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.53 billion, reflecting a 12.36% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $24.58 per share and revenue of $44.43 billion, indicating changes of +23.95% and +13.92%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.1% higher. Netflix is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Netflix currently has a Forward P/E ratio of 40.82. This represents a premium compared to its industry's average Forward P/E of 11.7.

Also, we should mention that NFLX has a PEG ratio of 2.08. 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 1.26 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 67, which puts it in the top 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

This article originally published on Zacks Investment Research (zacks.com).

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