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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
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Netflix (NFLX - Free Report) ended the recent trading session at $68.69, demonstrating a +1.76% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.45%.
The internet video service's stock has dropped by 13.74% in the past month, falling short of the Consumer Discretionary sector's loss of 5.62% and the S&P 500's gain of 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on October 20, 2026. It is anticipated that the company will report an EPS of $0.82, marking a 38.98% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $12.87 billion, indicating a 11.84% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.59 per share and a revenue of $51.23 billion, representing changes of +41.9% and +13.39%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Netflix is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 18.79. This denotes a premium relative to the industry average Forward P/E of 9.47.
It's also important to note that NFLX currently trades at a PEG ratio of 0.95. 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 had an average PEG ratio of 0.87 as trading concluded yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 29% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Netflix (NFLX) Surpasses Market Returns: Some Facts Worth Knowing
Netflix (NFLX - Free Report) ended the recent trading session at $68.69, demonstrating a +1.76% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.45%.
The internet video service's stock has dropped by 13.74% in the past month, falling short of the Consumer Discretionary sector's loss of 5.62% and the S&P 500's gain of 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on October 20, 2026. It is anticipated that the company will report an EPS of $0.82, marking a 38.98% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $12.87 billion, indicating a 11.84% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.59 per share and a revenue of $51.23 billion, representing changes of +41.9% and +13.39%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Netflix is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 18.79. This denotes a premium relative to the industry average Forward P/E of 9.47.
It's also important to note that NFLX currently trades at a PEG ratio of 0.95. 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 had an average PEG ratio of 0.87 as trading concluded yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 29% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.