Netflix (NFLX – Free Report) closed at $870.40 in the latest trading session, marking a +0.3% move from the prior day. The stock’s change was more than the S&P 500’s daily loss of 1.57%. Elsewhere, the Dow lost 0.84%, while the tech-heavy Nasdaq lost 2.15%.
The internet video service’s stock has climbed by 0.13% in the past month, exceeding the Consumer Discretionary sector’s loss of 13.72% and the S&P 500’s loss of 12.16%.
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 April 17, 2025. The company’s earnings per share (EPS) are projected to be $5.74, reflecting an 8.71% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.54 billion, indicating a 12.49% growth compared to the corresponding quarter of the prior year.
NFLX’s full-year Zacks Consensus Estimates are calling for earnings of $24.58 per share and revenue of $44.47 billion. These results would represent year-over-year changes of +23.95% and +14.03%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Netflix holds a Zacks Rank of #3 (Hold).
In terms of valuation, Netflix is currently trading at a Forward P/E ratio of 35.3. This represents a premium compared to its industry’s average Forward P/E of 10.98.
One should further note that NFLX currently holds a PEG ratio of 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 1.06.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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