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Why Netflix (NFLX) Outpaced the Stock Market Today
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Netflix (NFLX - Free Report) ended the recent trading session at $72.61, demonstrating a +2.89% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Heading into today, shares of the internet video service had lost 7.64% over the past month, lagging the Consumer Discretionary sector's loss of 3.52% and the S&P 500's gain of 1.41%.
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. Alongside, our most recent consensus estimate is anticipating revenue of $12.87 billion, indicating a 11.84% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.59 per share and revenue of $51.23 billion, indicating changes of +41.9% and +13.39%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Netflix is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Netflix is currently exchanging hands at a Forward P/E ratio of 19.64. This denotes a premium relative to the industry average Forward P/E of 9.3.
It is also worth noting that NFLX currently has a PEG ratio of 1. 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 0.88 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 65, putting it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Why Netflix (NFLX) Outpaced the Stock Market Today
Netflix (NFLX - Free Report) ended the recent trading session at $72.61, demonstrating a +2.89% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Heading into today, shares of the internet video service had lost 7.64% over the past month, lagging the Consumer Discretionary sector's loss of 3.52% and the S&P 500's gain of 1.41%.
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. Alongside, our most recent consensus estimate is anticipating revenue of $12.87 billion, indicating a 11.84% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.59 per share and revenue of $51.23 billion, indicating changes of +41.9% and +13.39%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Netflix is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Netflix is currently exchanging hands at a Forward P/E ratio of 19.64. This denotes a premium relative to the industry average Forward P/E of 9.3.
It is also worth noting that NFLX currently has a PEG ratio of 1. 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 0.88 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 65, putting it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.