Netflix (NFLX) Upgraded to Strong Buy this week based on the most current stock market ratings, and comparative pricing of its shares. The Strong Buy recommendation, which was recently up graded from a Buy to for Netflix Inc (NASDAQ:NFLX) is grounded on analytical scoring that is above average, a ranking in the company's industry group that is in the top decile, a ranking in its sector group that is in the top decile, and a quantitative risk/reward calculation that is attractive. As a member of a sector that is ranked above average in investment attractiveness is a plus from a recommendation perspective; however, its industry group is ranked well below average in attractiveness which may offset this in whole or in part. NFLX has been upgraded from a Buy to a Strong Buy in the last week.
With a $120.7 billion market value, the company ranks in the top 25% of its industry group, Cable/Satellite TV, and in the top 10% of its sector group, Consumer Services, in market value. From the perspective of investment attractiveness, NFLX is currently ranked number 1 among the 12 companies in this industry group by Portfolio Grader; in the top quartile of the sector with a ranking of 26 among the 256 companies in the sector of its Consumer Services sector, and number 388 in the nearly 5,000 company Portfolio Grader universe.
Currently, Portfolio Grader ranks the Consumer Services sector number 9 among the 20 sectors in its universe putting it in the second quartile of all the GICS sectors. The Cable/Satellite TV industry group is ranked 108 among the 129 industry groups within the GICS sectors, placing it well below-average in terms of the Proprietary Quantitative Score scoring system.
Within the Portfolio Grader stock ranking system Netflix has realized above-average scores in 5 of the 8 fundamental areas analyzed.
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 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 half of the industry group.
Portfolio Grader quantitatively measures NFLX's shares using the Proprietary Quantitative Score. This metric looks at NFLX's shares from the aspect of risk/reward. This unique scoring approach evaluates the relative value of the company's shares based on the recent $278.52 share 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 well above-average in its industry group compared to its peers.
The 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.
