Netflix (NFLX) ended the recent trading session at $935.52, demonstrating a +0.77% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.67%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.87%.
Shares of the internet video service witnessed a loss of 4.54% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 8.16% and the S&P 500's loss of 5.28%.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company plans to announce its earnings on April 17, 2025. The company's upcoming EPS is projected at $5.74, signifying an 8.71% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.54 billion, showing a 12.49% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $24.58 per share and a revenue of $44.47 billion, indicating changes of +23.95% and +14.03%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Netflix is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 37.76. This represents a premium compared to its industry's average Forward P/E of 11.63.
Investors should also note that NFLX has a PEG ratio of 1.92 right now. 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. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 1.24.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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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