Netflix (NFLX) Exceeds Market Returns: Some Facts to Consider

Netflix (NFLX) closed the most recent trading day at $1,253.54, moving +1.8% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%. The internet video service's shares have seen an increase of 3.88% over the last month, surpassing the Consumer Discretionary sector's gain of 0.13% and the S&P 500's gain of 0.5%.The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on July 17, 2025. The company's earnings per share (EPS) are projected to be $7.05, reflecting a 44.47% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $11.05 billion, up 15.59% from the prior-year quarter. NFLX's full-year Zacks Consensus Estimates are calling for earnings of $25.32 per share and revenue of $44.47 billion. These results would represent year-over-year changes of +27.69% and +14.01%, respectively. Investors should also take note of any recent adjustments to analyst estimates for Netflix. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 has moved 0% lower. Currently, Netflix is carrying a Zacks Rank of #3 (Hold). Digging into valuation, Netflix currently has a Forward P/E ratio of 48.63. Its industry sports an average Forward P/E of 13.87, so one might conclude that Netflix is trading at a premium comparatively. One should further note that NFLX currently holds a PEG ratio of 2.38. 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 1.17. The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 38% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks