Netflix (NFLX) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Netflix (NFLX) was down 3.11% at $91.76. The stock’s performance was behind the S&P 500’s daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.28%.
The stock of internet video service has risen by 21.43% in the past month, leading the Consumer Discretionary sector’s loss of 4.13% and the S&P 500’s loss of 3.59%.
The investment community will be closely monitoring the performance of Netflix in its forthcoming earnings report. The company is scheduled to release its earnings on April 16, 2026. In that report, analysts expect Netflix to post earnings of $0.76 per share. This would mark year-over-year growth of 15.15%. At the same time, our most recent consensus estimate is projecting a revenue of $12.17 billion, reflecting a 15.41% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.14 per share and a revenue of $51.23 billion, representing changes of +24.11% and +13.38%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Netflix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.52% higher. Right now, Netflix possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 30.15. For comparison, its industry has an average Forward P/E of 12.54, which means Netflix is trading at a premium to the group.
It’s also important to note that NFLX currently trades at a PEG ratio of 1.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The average PEG ratio for the Broadcast Radio and Television industry stood at 4.33 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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