Netflix (NFLX) Stock Slides as Market Rises: Facts to Know Before You Trade

Netflix (NFLX) closed at $71.40 in the latest trading session, marking a -3.23% move from the prior day. This change lagged the S&P 500's 0.79% gain on the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 1.52%.

The internet video service's stock has dropped by 14.06% in the past month, falling short of the Consumer Discretionary sector's loss of 0.73% and the S&P 500's loss of 1.82%.

Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on July 16, 2026. The company is forecasted to report an EPS of $0.79, showcasing a 9.72% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $12.57 billion, showing a 13.48% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.6 per share and a revenue of $51.41 billion, demonstrating changes of +42.29% and +13.77%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-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 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Netflix currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Netflix is holding a Forward P/E ratio of 20.5. This indicates a premium in contrast to its industry's Forward P/E of 13.04.

It is also worth noting that NFLX currently has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.09 as of yesterday's close.

Story Continues

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 44% of over 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.

To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.

Want 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 Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments