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

Group 1: Stock Performance - Netflix (NFLX) closed at $1,253.54, with a daily increase of +1.8%, outperforming the S&P 500's gain of 0.96% [1] - Over the last month, Netflix shares increased by 3.88%, significantly surpassing the Consumer Discretionary sector's gain of 0.13% and the S&P 500's gain of 0.5% [1] Group 2: Upcoming Earnings - The upcoming earnings report for Netflix is scheduled for July 17, 2025, with projected earnings per share (EPS) of $7.05, indicating a 44.47% increase year-over-year [2] - Revenue is expected to reach $11.05 billion, reflecting a 15.59% increase from the same quarter last year [2] Group 3: Full-Year Estimates - Zacks Consensus Estimates for Netflix indicate full-year earnings of $25.32 per share and revenue of $44.47 billion, representing year-over-year changes of +27.69% and +14.01%, respectively [3] - Recent adjustments to analyst estimates suggest positive sentiment regarding Netflix's business and profitability [3] Group 4: Valuation Metrics - Netflix has a Forward P/E ratio of 48.63, which is significantly higher than the industry average of 13.87, indicating that Netflix is trading at a premium [6] - The company holds a PEG ratio of 2.38, compared to the Broadcast Radio and Television industry's average PEG ratio of 1.17 [7] Group 5: Industry Context - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 154, placing it in the bottom 38% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]