Here's Why Netflix (NFLX) Gained But Lagged the Market Today

In the latest market close, Netflix (NFLX) reached $911.45, with a +0.26% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.The the stock of internet video service has risen by 1.25% in the past month, leading the Consumer Discretionary sector's gain of 0.86% and the S&P 500's gain of 0.34%.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 January 21, 2025. The company is forecasted to report an EPS of $4.21, showcasing a 99.53% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.15 billion, showing a 14.96% escalation compared to the year-ago quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.78 per share and a revenue of $38.91 billion, indicating changes of +64.42% and +15.38%, respectively, from the former year.Any recent changes to analyst estimates for Netflix should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Netflix is currently a Zacks Rank #3 (Hold).Valuation is also important, so investors should note that Netflix has a Forward P/E ratio of 45.95 right now. This expresses a premium compared to the average Forward P/E of 9.08 of its industry.Also, we should mention that NFLX has a PEG ratio of 1.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Broadcast Radio and Television was holding an average PEG ratio of 0.76 at yesterday's closing price.The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 126, which puts it in the top 50% of all 250+ industries.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks