Netflix Inc (NASDAQ:NFLX) ranks in the top decile in its industry group, Internet & Direct Marketing Retail, and in the top decile of sector group, Consumer Discretionary, with a market value of $81.6 billion. From an investment attractiveness prospective, NFLX is ranked in the top half of the sector with a ranking of 146 among the 567 companies in the sector; Portfolio Grader's current ranking for NFLX puts it 11 among the 32 companies in this industry group, putting it in the second quartile and number 1,330 in the 5000 company Portfolio Grader company universe.
NFLX has a current recommendation of Buy using the approach of Louis Navellier for investing and his Portfolio Grader stock evaluator. NFLX has maintained this ranking for 2 months.
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 46 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.
NFLX has achieved above-average scores in 5 of the 8 fundamental areas appraised by Portfolio Grader and average or below-average grades in 3 of the areas used in the ranking of company stocks.
NFLX'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 score for return on equity is noticeably 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 perspective of risk/reward. This exclusive scoring system balances the relative value of the company'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. Using this risk/reward calculation, NFLX 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.
