Currently, Netflix Inc (NASDAQ:NFLX) has a Buy using the methodology of Louis Navellier for investing and his Portfolio Grader stock evaluator. This represents no change from the previous week and is the same ranking NFLX has had from Portfolio Grader for 2 months.
The company is one of the 567 companies in the GICS Consumer Discretionary sector and is a member of the 32 company Internet & Direct Marketing Retail GICS industry group within this sector. NFLX has a market value of $80.8 billion which is in the top 10% of its industry group The ranking for NFLX by Portfolio Grader places it 11 among the 32 companies in this industry group, placing it in the top half.
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 42 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.
Netflix has earned above-average scores in 5 of the 8 fundamental areas analyzed 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 materially 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 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 exclusive scoring approach weighs 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. Based on 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.
