We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix (NFLX) Stock Sinks As Market Gains: Here's Why
Read MoreHide Full Article
Netflix (NFLX - Free Report) closed at $76.05 in the latest trading session, marking a -2.06% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.12%.
Shares of the internet video service have depreciated by 5.51% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.31%, and the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 16, 2026. The company is forecasted to report an EPS of $0.79, showcasing a 9.72% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.57 billion, indicating a 13.48% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.6 per share and a revenue of $51.41 billion, signifying shifts of +42.29% and +13.77%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 21.58. This valuation marks a premium compared to its industry average Forward P/E of 13.93.
Also, we should mention that NFLX has a PEG ratio of 0.99. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 1.14 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 170, placing it within the bottom 31% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Netflix (NFLX) Stock Sinks As Market Gains: Here's Why
Netflix (NFLX - Free Report) closed at $76.05 in the latest trading session, marking a -2.06% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.12%.
Shares of the internet video service have depreciated by 5.51% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.31%, and the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 16, 2026. The company is forecasted to report an EPS of $0.79, showcasing a 9.72% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.57 billion, indicating a 13.48% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.6 per share and a revenue of $51.41 billion, signifying shifts of +42.29% and +13.77%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 21.58. This valuation marks a premium compared to its industry average Forward P/E of 13.93.
Also, we should mention that NFLX has a PEG ratio of 0.99. 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 average PEG ratio for the Broadcast Radio and Television industry stood at 1.14 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 170, placing it within the bottom 31% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.