Citi Analyst Upgrades Netflix (NFLX, $321.10) Stock from "Neutral" to "Buy"
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.
NFLX in +11.25% Uptrend, advancing for three consecutive days on May 18, 2023
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where NFLX advanced for three days, in of 300 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 08, 2023. You may want to consider a long position or call options on NFLX as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NFLX just turned positive on May 09, 2023. Looking at past instances where NFLX's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
NFLX moved above its 50-day moving average on May 05, 2023 date and that indicates a change from a downward trend to an upward trend.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NFLX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NFLX broke above its upper Bollinger Band on May 18, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NFLX entered a downward trend on May 11, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NFLX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (7.716) is normal, around the industry mean (4.253). P/E Ratio (40.816) is within average values for comparable stocks, (72.197). Projected Growth (PEG Ratio) (1.877) is also within normal values, averaging (2.646). NFLX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.058). P/S Ratio (5.356) is also within normal values, averaging (111.369).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
