In the latest trading session, Netflix (NFLX) closed at $1,339.13, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%.
Heading into today, shares of the internet video service had gained 9.6% over the past month, outpacing the Consumer Discretionary sector's gain of 5.55% and the S&P 500's gain of 4.27%.
Investors will be eagerly watching for the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 17, 2025. The company is predicted to post an EPS of $7.05, indicating a 44.47% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $11.05 billion, up 15.59% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $25.32 per share and a revenue of $44.47 billion, representing changes of +27.69% and +14.01%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Netflix. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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% fall in the Zacks Consensus EPS estimate. Netflix is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 52.25 right now. This expresses a premium compared to the average Forward P/E of 14.71 of its industry.
One should further note that NFLX currently holds a PEG ratio of 2.56. 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 of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 1.2.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 40% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much 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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