Summary
Netflix (NFLX) shows strong technical indicators with 100% buy signals, a 103.86% gain in the last year, and a Trend Seeker buy signal.
Fundamental factors include a market cap of $390 billion, a P/E ratio of 51.71, and expected revenue growth of 15.30% this year.
Analysts are mixed with 23 strong buys, 14 holds, and price targets ranging from $550 to $1,100, reflecting diverse opinions on future performance.
Despite high valuations, Netflix's intelligent platform and global reach make it a compelling investment, though competition and market volatility are notable risks.
The Chart of the Day belongs to the streaming entertainment company Netflix (NFLX) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 10/21 the stock gained 21.43%.
NFLX Price vs Daily Moving Averages:
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 104.69+ Weighted Alpha
- 103.86% gain in the last year
- Trend Seeker buy signal
- 1.27 - 60 month Beta
- Above its 20, 50 and 100 day moving averages
- 11 new highs and up 16.40% in the last month
- Relative Strength Index 73.40%
- Technical support level at $907.46
- Recently traded at $938.00 with 50 day moving average of $802.39
Fundamental Factors:
- Market Cap $390 billion
- P/E 51.71
- Revenue expected to grow 15.30% this year and another 12.71% next year
- Earnings are estimated to increase by 64.83% this year and an additional 20.36% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 23 strong buy, 2 buy, 14 hold a 2 sell opinions on the stock
- Analysts' price target are between $550 and $1,100 (This is a very, very wide estimate somebody will be proven wrong)
- Value Line rates the stock its above average rating of 2 with price between $660 and $1,213 with a mid-range of $936 and comments:"These shares are ranked to outpace the market in the coming year. However, the recent rise in the price of the stock leaves it with only average capital appreciation potential out to 2027-2029 "
- CFRA's MarketScope rates the stock a buy with a price target of $975 and comments:"We think NFLX deserves a premium to peers given its intelligent platform that captures viewership habits to personalize viewer experience."
- MorningStar thinks the stock is 66% over valued but comments:" Netflix is beginning to face competition that it has not had to deal with in the past. As consumers have more options for quality streaming services, it’s more likely that Netflix could get cut out of some consumer budgets."
- 512,680 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
