Netflix (NFLX) closed at $976.72 in the latest trading session, marking a +0.63% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.53%.
The internet video service's stock has dropped by 1.96% in the past month, exceeding the Consumer Discretionary sector's loss of 4.73% and the S&P 500's loss of 4.03%.
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 April 17, 2025. It is anticipated that the company will report an EPS of $5.74, marking an 8.71% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.54 billion, up 12.49% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $24.58 per share and revenue of $44.47 billion, which would represent changes of +23.95% and +14.03%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. At present, Netflix boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Netflix is presently trading at a Forward P/E ratio of 39.48. Its industry sports an average Forward P/E of 12.54, so one might conclude that Netflix is trading at a premium comparatively.
One should further note that NFLX currently holds a PEG ratio of 2.01. 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. The Broadcast Radio and Television was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons 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.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
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Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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