Netflix IncNFLX is gearing up to release its third-quarter earnings report later this week. Market analysts are anticipating earnings per share of $5.12 and revenues of $9.77 billion as the company unveils its financial performance after the closing bell on Thursday.
Over the past year, investors have witnessed Netflix’s stock surge by 95.12%, with a year-to-date increase of 50.27%.
Let’s delve into the charts for Netflix stock and explore how it currently aligns with the forecasts put forth by Wall Street.
Netflix Stock Forecast: Short-Term Challenges, Long-Term Promise With Q3 Results on the Horizon
An evaluation of Netflix stock’s technical indicators reveals a mixed picture, with the ongoing trend showing a slight tilt towards bearish territory as the stock encounters some selling pressure.
Analytical Graph: Benzinga Pro
With a current price of $699.27, Netflix stock has dipped below its eight-day and 20-day simple moving averages of $715.31 and $712.44, indicating a bearish trajectory.
However, a contrasting narrative emerges when examining the longer-term signals. The 50-day SMA of $690.78 and the 200-day SMA of $625.54 both point to optimistic prospects, suggesting that the stock may be bolstered by underlying strength.
Analytical Graph: Benzinga Pro
The Moving Average Convergence Divergence (MACD) indicator, standing at 6.06, lends further support to a bullish scenario. Concurrently, the Relative Strength Index (RSI) of 47.08 signals that the stock is currently not in an overbought or oversold state.
While Netflix’s stock remains within the Bollinger Bands’ range of $687.03 to $731.08, currently residing in the lower bearish band, historical data suggests that the stock has predominantly traded within the upper bullish band. A potential earnings beat could be the catalyst required for Netflix to reclaim its position in the bullish territory.
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Analysts Remain Bullish on Netflix Stock, Though Upside Limited
Ratings & Consensus Estimates: Analyst sentiment towards Netflix stock continues to be favorable, with a consensus rating of Buy and a price target of $720.50. Recent assessments from analysts at Loop Capital, Benchmark, and Guggenheim in mid-October collectively indicate an average price target of $718.33, projecting a potential 2.03% uptick in Netflix’s stock value.
NFLX Price Action: At the time of writing, Netflix stock was slightly down by 0.53% at $702.24 on Wednesday.
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