Netflix Inc (NASDAQ:NFLX) is ranked as a Buy using the system for investing of Louis Navellier and his Portfolio Grader stock evaluator. This represents no change from the previous week and is the same ranking NFLX has had from Portfolio Grader for the last month.
NFLX is a $83.6 billion in market value constituent of the Internet & Direct Marketing Retail GICS industry group where Portfolio Grader's current ranking for NFLX puts it 5 among the 32 companies in this industry group, placing it among the leaders. NFLX is ranked in the top quartile of the sector with a ranking of 93 among the 569 companies in the sector of its Consumer Discretionary sector and 913 in the Portfolio Grader company universe.
Currently, Portfolio Grader ranks the Consumer Discretionary sector number 11 among the 12 sectors in its universe putting it in the bottom quartile of all the GICS sectors. The Internet & Direct Marketing Retail industry group is ranked 50 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.
Netflix has attained above-average scores in 5 of the 8 fundamental areas evaluated by Portfolio Grader and average or below-average grades in 3 of the areas used in the ranking of company stocks.
The company's operational scores are a source of strength with a ranking for sales growth, operating margin and earnings growth that are well above average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum worse than average. NFLX's metric for return on equity is appreciably better than its industry group average but its ranking for cash flow is below-average. Netflix's fundamental scores give NFLX a place in the top quartile of the industry group.
Portfolio Grader quantitatively measures NFLX's shares using the Navellier Proprietary Quantitative Score. This metric looks at NFLX's shares from the viewpoint of risk/reward. This exclusive scoring system considers the relative value of NFLX's shares based on the current price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, the company currently scores above-average in its industry group compared to its peers.
Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.
