As one of the 568 companies in the GICS Consumer Discretionary sector Netflix Inc (NASDAQ:NFLX) is a component of the 33 company Internet & Direct Marketing Retail GICS industry group within this sector. The market value of NFLX is $82.2 billion which falls in the top 10% of its industry group. Portfolio Grader's current ranking for NFLX puts it 13 among the 33 companies in this industry group, giving it an above-average position; in the top half of the sector with a ranking of 210 among the 568 companies in the sector, and number 1,760 in the nearly 5,000 company Portfolio Grader universe.
NFLX is rated as a Hold using the Portfolio Grader stock evaluator, which incorporates Louis Navellier's investing methodology. NFLX has been downgraded from a Buy to a Hold in the last week.
The Consumer Discretionary sector is ranked number 10 among the 12 sectors in the Portfolio Grader universe putting it in the bottom quartile of all the GICS sectors. The Internet & Direct Marketing Retail industry group is ranked 25 among the 69 industry groups within the GICS sectors, placing it near the average in terms of the Navellier scoring system.
Within the Portfolio Grader stock ranking system Netflix has achieved above-average scores in 5 of the 8 fundamental areas analyzed by Portfolio Grader and average or below-average scores in 3 of the areas evaluated 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 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 uses the Navellier Proprietary Quantitative Score to gauge NFLX's shares from the aspect of risk/reward. This exclusive scoring methodology 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. Using this risk/reward calculation, the company currently scores as 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.
