Netflix, Inc. : Below a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
US$350.14 |
US$291 |
US$385.2 |
+16.89% |
---|
Up substantially over the past few weeks, shares in Netflix should pause in their rise close to the major resistance around 385.03 USD.
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● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● The group usually releases upbeat results with huge surprise rates.
● Analysts covering this company mostly recommend stock overweighting or purchase.
Weaknesses● The company is in debt and has limited leeway for investment
● Based on current prices, the company has particularly high valuation levels.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 103.36 times its estimated earnings per share for the ongoing year.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● For the past year, analysts have significantly revised downwards their profit estimates.
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