Netflix (NFLX) ended the recent trading session at $1,191.06, demonstrating a +2.39% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.67%.
Prior to today's trading, shares of the internet video service had lost 6.54% lagged the Consumer Discretionary sector's loss of 2.35% and the S&P 500's gain of 4.06%.
Market participants will be closely following the financial results of Netflix in its upcoming release. The company plans to announce its earnings on October 21, 2025. In that report, analysts expect Netflix to post earnings of $6.88 per share. This would mark year-over-year growth of 27.41%. At the same time, our most recent consensus estimate is projecting a revenue of $11.52 billion, reflecting a 17.3% rise from the equivalent quarter last year.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $26.06 per share and revenue of $45.03 billion. These results would represent year-over-year changes of +31.42% and +15.47%, respectively.
It's also important for investors to be aware of any recent modifications 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Netflix currently has a Zacks Rank of #4 (Sell).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 44.64. This signifies a premium in comparison to the average Forward P/E of 31.59 for its industry.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 1.92.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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