Netflix (NFLX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Netflix (NFLX) closed the latest trading day at $950.84, indicating a -0.9% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.33%.Coming into today, shares of the internet video service had lost 8.04% in the past month. In that same time, the Consumer Discretionary sector lost 8.76%, while the S&P 500 lost 7.48%.The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on April 17, 2025. The company's upcoming EPS is projected at $5.74, signifying an 8.71% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.54 billion, indicating a 12.49% increase compared to the same quarter of the previous year.For the full year, the Zacks Consensus Estimates project earnings of $24.58 per share and a revenue of $44.47 billion, demonstrating changes of +23.95% and +14.03%, respectively, from the preceding year.Investors should also pay attention to any latest changes in analyst estimates for Netflix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Netflix is currently a Zacks Rank #2 (Buy).In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 39.03. For comparison, its industry has an average Forward P/E of 12.08, which means Netflix is trading at a premium to the group.Meanwhile, NFLX's PEG ratio is currently 1.99. 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 1.27 as of yesterday's close.The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks