A Citigroup analysis upgrades its recommendation on Netflix .
The online video-streaming company’s more than -15% plunge in stock price over the past three months is potentially an attractive buying opportunity for investors, according to Citi’s analyst Mark May who raised his rating from “Neutral” to “Buy” for Netflix stock.
May also mentioned in a note that the previous "Neutral" rating for Netflix was based to some extent on its high valuations; the recent decline in the broader market has made Netflix stock prices more reasonable. Moreover, the Citi analyst emphasized on Netflix’s solid fundamentals, including its growing international market and a promising revenue model - all of which bolsters the stock’s quality. He further added that the firm's free cash flow burn is likely to taper off by 2018-end, and that he expects the free cash flow to turn positive in 2020 or 2021.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where NFLX declined for three days, in of 295 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where NFLX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved above the 0 level on April 16, 2024. You may want to consider a long position or call options on NFLX as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NFLX advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 286 cases where NFLX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NFLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.920) is normal, around the industry mean (5.400). P/E Ratio (51.065) is within average values for comparable stocks, (87.119). Projected Growth (PEG Ratio) (1.889) is also within normal values, averaging (2.822). NFLX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.040). P/S Ratio (8.190) is also within normal values, averaging (29.645).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of online movie rental subscription services
Industry MoviesEntertainment