Netflix, Inc. : Below a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
$332.55 |
$291.1 |
$351 |
+12.46% |
---|
Netflix shares can be expected to top out below the medium term resistance at 339.67 USD. The timing appears attractive to take advantage of a correction below this level.
Summary● 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 poor fundamentals for a short-term investment strategy.
Strengths● The prospective high growth for the next fiscal years is among the main assets of the company
● The group usually releases upbeat results with huge surprise rates.
Weaknesses● Technically, the stock approaches a strong medium-term resistance at USD 339.67.
● The company is in debt and has limited leeway for investment
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 60.94 and 40.65 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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