In the latest close session, Netflix (NFLX) was down 1.19% at $1,203.95. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.34%.
Coming into today, shares of the internet video service had lost 0.62% in the past month. In that same time, the Consumer Discretionary sector lost 0.43%, while the S&P 500 gained 3.08%.
The investment community will be paying close attention to the earnings performance of Netflix in its upcoming release. The company is slated to reveal its earnings on October 21, 2025. The company is forecasted to report an EPS of $6.88, showcasing a 27.41% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $11.52 billion, showing a 17.3% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $26.06 per share and revenue of $45.03 billion. These totals would mark changes of +31.42% and +15.47%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, there's been no change in the Zacks Consensus EPS estimate. Netflix currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 46.76 right now. This represents a premium compared to its industry average Forward P/E of 29.57.
One should further note that NFLX currently holds a PEG ratio of 2.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Broadcast Radio and Television industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 180, positioning it in the bottom 28% 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.
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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