NETFLIX, INC. ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● The group usually releases upbeat results with huge surprise rates.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The tendency within the weekly time frame is positive above the technical support level at 101.47 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 127.5.
● The stock is close to a major daily resistance at USD 128.35, which should be gotten rid of so as to gain new appreciation potential.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 305.53 and 130.12 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
