Back to top

Image: Bigstock

Netflix (NFLX) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

In the latest trading session, Netflix (NFLX - Free Report) closed at $90.98, marking a -2.97% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.19%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq lost 0.03%.

Heading into today, shares of the internet video service had lost 9.16% over the past month, lagging the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 0.54%.

The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. The company is scheduled to release its earnings on January 20, 2026. The company is expected to report EPS of $0.55, up 27.91% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $11.97 billion, reflecting a 16.79% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.53 per share and a revenue of $45.1 billion, indicating changes of +27.78% and 0%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Netflix. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.55% increase. As of now, Netflix holds a Zacks Rank of #3 (Hold).

With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 29.19. For comparison, its industry has an average Forward P/E of 11.87, which means Netflix is trading at a premium to the group.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 31% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Netflix, Inc. (NFLX) - free report >>

Published in