The current recommendation of Buy for Netflix Inc (NASDAQ:NFLX) is derived using Louis Navellier's Portfolio Grader stock evaluator, which incorporates his investing methodology. The current Portfolio Grader recommendation on the shares has been in place for the last month.
The company is classified as a constituent of the 32 company Internet & Direct Marketing Retail GICS industry group, which is part of the 568 company GICS Consumer Discretionary sector. NFLX has a market value of $83.1 billion which is in the top 10% of its industry group Currently, the stock's Portfolio Grader ranking places it 7 among the 32 companies in this industry group, placing it among the leaders.
The Consumer Discretionary sector is ranked number 12 among the 12 sectors in the Portfolio Grader universe putting it as the least attractive sector 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 achieved 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 discernibly better than its industry group average but its ranking for cash flow is below-average. These fundamental scores give Netflix a position 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 aspect of risk/reward. This proprietary 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.