Netflix Inc (NASDAQ:NFLX) is one of the 568 companies in the GICS Consumer Discretionary sector, and a component of the 33 company Internet & Direct Marketing Retail GICS industry group within this sector. The market value of NFLX is $83.1 billion which places it in the top 10% of its industry group. The ranking for NFLX by Portfolio Grader places it 10 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 156 among the 568 companies in the sector, and number 1,295 in the nearly 5,000 company Portfolio Grader universe.
Portfolio Grader currently ranks NFLX as a Buy. Using Louis Navellier's investing system this stock analysis tool researches stocks by means of fundamental and quantitative metrics. NFLX has maintained this ranking for 2 months.
Portfolio Grader currently ranks the Consumer Discretionary sector number 10 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 26 among the 69 industry groups within the GICS sectors, placing it near the average in terms of the Navellier scoring system.
Netflix has received above-average scores in 5 of the 8 fundamental areas evaluated 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 discernibly 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.
The Navellier Proprietary Quantitative Score is used by Portfolio Grader to gauge NFLX's shares from the perspective of risk/reward. This proprietary scoring methodology evaluates 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. Based on this risk/reward calculation, the company 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.
