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Netflix (NFLX) Registers a Bigger Fall Than the Market: Important Facts to Note
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Netflix (NFLX - Free Report) closed at $1,183.59 in the latest trading session, marking a -1.64% move from the prior day. This move lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 0.47%.
The internet video service's stock has dropped by 2.05% in the past month, exceeding the Consumer Discretionary sector's loss of 3.5% and lagging the S&P 500's gain of 0.92%.
The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. The company is slated to reveal its earnings on October 21, 2025. The company's earnings per share (EPS) are projected to be $6.89, reflecting a 27.59% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $11.52 billion, showing a 17.3% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $26.1 per share and revenue of $45.07 billion, which would represent changes of +31.62% and +15.55%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Netflix. 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 46.1. This signifies a premium in comparison to the average Forward P/E of 30 for its industry.
It's also important to note that NFLX currently trades at a PEG ratio of 2.02. 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 1.86 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Netflix (NFLX) Registers a Bigger Fall Than the Market: Important Facts to Note
Netflix (NFLX - Free Report) closed at $1,183.59 in the latest trading session, marking a -1.64% move from the prior day. This move lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 0.47%.
The internet video service's stock has dropped by 2.05% in the past month, exceeding the Consumer Discretionary sector's loss of 3.5% and lagging the S&P 500's gain of 0.92%.
The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. The company is slated to reveal its earnings on October 21, 2025. The company's earnings per share (EPS) are projected to be $6.89, reflecting a 27.59% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $11.52 billion, showing a 17.3% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $26.1 per share and revenue of $45.07 billion, which would represent changes of +31.62% and +15.55%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Netflix. 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
Investors should also note Netflix's current valuation metrics, including its Forward P/E ratio of 46.1. This signifies a premium in comparison to the average Forward P/E of 30 for its industry.
It's also important to note that NFLX currently trades at a PEG ratio of 2.02. 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 1.86 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.