NETFLIX INC (NASDAQ:NFLX) – A High Growth Momentum Stock with Strong Technical Setup

NETFLIX INC (NASDAQ:NFLX) stands out as a strong candidate for high-growth momentum investors, combining robust earnings momentum with a favorable technical breakout setup. The company’s recent performance in both fundamentals and price action suggests potential for further upside.

Growth Momentum Highlights

• Earnings Growth: NFLX reported a 47.3% year-over-year EPS growth in the most recent quarter, following a 102.4% surge two quarters prior. Over the past 12 months, EPS growth reached 46.7%.
• Profit Margins Expanding: The latest quarterly profit margin stood at 28.2%, up from 18.2% a year ago, reflecting improved efficiency and pricing power.
• Free Cash Flow Surge: FCF per share grew by 99.5% over the past year, signaling strong cash generation.
• Analyst Upgrades: EPS estimates for the next year have been revised upward by 2.8% in the last three months, indicating optimism.

Technical Strength

• Perfect Technical Rating (10/10): NFLX is in a strong uptrend, outperforming 92% of all stocks in the market and 83% of its entertainment industry peers.
• Consolidation Setup (7/10): Prices have been trading in a range between $1,198 and $1,341, with support near $1,209. A recent pocket pivot signal suggests accumulation.
• Moving Averages Aligned: The stock trades above rising 20-day, 50-day, 100-day, and 200-day moving averages, confirming bullish momentum.

For a deeper look at the technicals, review the full technical report.

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Disclaimer

This is not investment advice. The observations are based on current data, but investors should conduct their own research before making decisions.