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Netflix (NFLX) Falls More Steeply Than Broader Market: What Investors Need to Know
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Netflix (NFLX - Free Report) closed at $69.23 in the latest trading session, marking a -2.69% move from the prior day. This change lagged the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.92%.
Heading into today, shares of the internet video service had lost 12.94% over the past month, lagging the Consumer Discretionary sector's loss of 8.94% and the S&P 500's gain of 0.96%.
The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on October 20, 2026. The company is forecasted to report an EPS of $0.82, showcasing a 38.98% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $12.88 billion, up 11.9% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.59 per share and revenue of $51.25 billion. These totals would mark changes of +41.9% and +13.42%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Netflix presently features a Zacks Rank of #4 (Sell).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 19.8. This indicates a premium in contrast to its industry's Forward P/E of 10.62.
It's also important to note that NFLX currently trades at a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 0.9.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 44% echelons of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Netflix (NFLX) Falls More Steeply Than Broader Market: What Investors Need to Know
Netflix (NFLX - Free Report) closed at $69.23 in the latest trading session, marking a -2.69% move from the prior day. This change lagged the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.92%.
Heading into today, shares of the internet video service had lost 12.94% over the past month, lagging the Consumer Discretionary sector's loss of 8.94% and the S&P 500's gain of 0.96%.
The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on October 20, 2026. The company is forecasted to report an EPS of $0.82, showcasing a 38.98% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $12.88 billion, up 11.9% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.59 per share and revenue of $51.25 billion. These totals would mark changes of +41.9% and +13.42%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Netflix presently features a Zacks Rank of #4 (Sell).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 19.8. This indicates a premium in contrast to its industry's Forward P/E of 10.62.
It's also important to note that NFLX currently trades at a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 0.9.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 44% echelons of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.