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Recent Trading Performance
Netflix (NFLX) closed at $103.96 in the latest session, recording a -4.93% change from the previous day. This movement trailed behind the broader market indices, with the S&P 500 rising 0.3%, the Dow Jones Industrial Average adding 0.86%, and the Nasdaq Composite gaining 0.17%. Despite the daily decline, Netflix demonstrated resilience over the past month, posting a 0.05% increase, surpassing both the Consumer Discretionary sector, which fell 0.3%, and the S&P 500, which experienced a slight 0.06% drop.
Zacks Rank and EPS Estimate Trends
Research indicates that alterations in earnings estimates are closely correlated with near-term stock performance. Netflix currently carries a Zacks Rank of #3 (Hold). The Zacks Rank system, which spans from #1 (Strong Buy) to #5 (Strong Sell), has historically demonstrated a reliable track record, with #1-rated stocks generating an average annual return of +25% since 1988.
Over the past month, the Zacks Consensus EPS estimate for Netflix has moved 0.33% lower, reflecting minor downward revisions in projected earnings. Analysts and investors frequently monitor these changes, as they often signal potential shifts in stock momentum or sector sentiment.
Valuation Metrics
Netflix’s Forward P/E ratio currently stands at 43.3, considerably higher than the Broadcast Radio and Television industry average of 15.01, highlighting a premium relative to peers. The stock also posts a PEG ratio of 1.62, a metric that incorporates expected earnings growth alongside traditional price-to-earnings evaluation. For comparison, the industry average PEG ratio was 1.25 as of yesterday’s close.
Such valuation indicators offer insight into how the market prices Netflix in relation to both growth potential and sector standards. Observers note that a higher Forward P/E and PEG ratio often reflect elevated expectations for future earnings, while industry averages provide a benchmark for assessing relative positioning.
Industry Context and Ranking
Netflix is part of the Broadcast Radio and Television industry, which itself falls under the Consumer Discretionary sector. The Zacks Industry Rank, which measures the average Zacks Rank of individual stocks within a group, currently places this industry at 95, situating it within the top 39% of more than 250 sectors and industries.
Research suggests that industries with a higher Zacks Rank tend to outperform their lower-ranked peers, often by a factor of 2 to 1. This context helps frame Netflix’s performance not just on an individual basis, but relative to the broader sector and industry environment.
Monthly Performance Overview
Examining Netflix’s one-month performance reveals a slight uptick of 0.05%, which contrasts with declines across both its sector and the S&P 500 index. This indicates that, despite short-term volatility, the stock has maintained relative stability compared to broader market trends.
Analysts often view such comparisons as a gauge of relative strength within a sector, as outperforming peers may signal resilience in a fluctuating market.
Market Comparison
In recent sessions, Netflix’s performance has been mixed when compared to major indices:
- S&P 500: +0.3%
- Dow Jones: +0.86%
- Nasdaq: +0.17%
- Netflix: -4.93% (daily), +0.05% (monthly)
While daily fluctuations may reflect short-term market dynamics, monthly comparisons provide perspective on the stock’s stability relative to sector peers and overall market movements.
Research Tools and Monitoring
For market participants, tools such as Zacks.com offer continuous updates on key metrics, including earnings estimates, industry rankings, and stock-specific ratings. These platforms integrate quantitative models like the Zacks Rank, which incorporate earnings revisions and other performance indicators to highlight stocks exhibiting notable trends.
Staying informed about changes in valuation metrics, sector performance, and consensus estimates allows market observers to analyze Netflix’s relative standing and track evolving trends in real time.
