Portfolio Grader currently ranks Netflix Inc (NASDAQ:NFLX) a Buy. The methodology for investing incorporated in this analytical tool developed by Louis Navellier assesses and ranks nearly 5,000 stocks each week from a fundamental and quantitative perspective. The current Portfolio Grader recommendation on the shares has been in place for 2 months.
NFLX is a $81.6 billion in market value constituent of the Internet & Direct Marketing Retail GICS industry group where the ranking for NFLX by Portfolio Grader places it 11 among the 32 companies in this industry group, giving it an above-average position. NFLX is ranked in the top half of the sector with a ranking of 146 among the 567 companies in the sector of its Consumer Discretionary sector and 1,330 in the Portfolio Grader company universe.
The Consumer Discretionary sector is ranked number 11 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 46 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.
Netflix has realized above-average scores in 5 of the 8 fundamental metrics used 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. Based on these fundamental scores, Netflix places in the top quartile of the industry group.
Portfolio Grader uses the Navellier Proprietary Quantitative Score to view NFLX's shares from the angle of risk/reward. This proprietary scoring methodology assesses 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. Considering 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.
