Netflix (NFLX) ended the recent trading session at $89.44, demonstrating a -1.21% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.65%. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.82%.
Shares of the internet video service have depreciated by 3.78% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.38%, and the S&P 500's gain of 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on January 20, 2026. The company's upcoming EPS is projected at $0.55, signifying a 27.91% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.97 billion, reflecting a 16.79% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.53 per share and revenue of $45.09 billion. These totals would mark changes of +27.78% and 0%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.14% rise in the Zacks Consensus EPS estimate. Netflix is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Netflix is presently trading at a Forward P/E ratio of 28.18. This valuation marks a premium compared to its industry average Forward P/E of 11.69.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 110, putting it in the top 45% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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