In the latest trading session, Netflix (NFLX) closed at $77.91, marking a -3% move from the previous day. This change lagged the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
The internet video service's stock has climbed by 5.66% in the past month, exceeding the Consumer Discretionary sector's loss of 4.05% and the S&P 500's loss of 1.99%.
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 October 20, 2026. In that report, analysts expect Netflix to post earnings of $0.82 per share. This would mark year-over-year growth of 38.98%. At the same time, our most recent consensus estimate is projecting a revenue of $12.88 billion, reflecting a 11.9% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.59 per share and a revenue of $51.25 billion, representing changes of +41.9% and +13.42%, respectively, from the prior year.
Any recent changes to analyst estimates for Netflix should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 22.35. This signifies a premium in comparison to the average Forward P/E of 11.54 for its industry.
We can additionally observe that NFLX currently boasts a PEG ratio of 1.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 0.99 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Netflix, Inc. (NFLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).