NETFLIX INC (NASDAQ:NFLX) Stands Out as a High-Growth Momentum Stock with Strong Technical Setup

Investors looking for high-growth momentum stocks with solid technical setups often focus on companies showing faster earnings, wider profit margins, and steady price trends. The ChartMill High Growth Momentum (HGM) Rating blends these key growth measures with technical analysis, pinpointing stocks that not only have strong earnings momentum but also display promising chart patterns for possible breakouts. NETFLIX INC (NASDAQ:NFLX) stands out as a strong fit for this strategy, performing well in both growth and technical areas.

Why NFLX Meets the High Growth Momentum Standards

The HGM Rating assesses various growth and momentum factors, and NFLX earns a solid 6 out of 10, highlighting its solid fundamentals:

• Earnings Growth:

  • Year-over-year EPS growth is 46.7%, with the latest quarter showing a 47.3% rise compared to the same period last year.
  • Free Cash Flow (FCF) growth is even stronger at 99.5%, reflecting efficient cash generation.
  • Analysts have raised next-year EPS estimates by 2.8% over the past three months, showing growing confidence in future profits.

• Sales & Profitability Growth:

  • Revenue growth stays steady at 14.8% (TTM), with the most recent quarter reporting 15.9% year-over-year growth.
  • Profit margins have widened notably, with the latest quarter hitting 28.2%, up from 24.1% a year ago.

• Earnings Surprises & Revisions:

  • NFLX has exceeded EPS estimates in two of the last four quarters, with an average surprise of 4.1%.
  • While revenue surprises have varied, the upward adjustments in both earnings and sales estimates indicate ongoing momentum.

These metrics match the HGM Rating’s emphasis on faster earnings, margin growth, and positive analyst outlook—critical factors for high-growth investors following strategies like CANSLIM or Minervini’s trend-based methods.

Technical Strength & Setup Quality

NFLX’s technical profile adds to its appeal, with a Technical Rating of 8 and a Setup Rating of 7, as seen in the full technical report. Key points include:

• Trend Strength:

  • The long-term trend stays positive, with the stock beating 91% of the market over the past year.
  • It trades near the top of its 52-week range ($660.80–$1,341.15), though slightly behind the S&P 500’s recent peaks.

• Consolidation & Breakout Potential:

  • The stock has moved between $1,144.71 and $1,246.94 over the past month, providing clear support and resistance levels.
  • The setup hints at a possible breakout above $1,246.95, with a stop-loss level near $1,144.70 (an 8.2% risk).

• Support Levels:

  • Multiple support areas lie below, including a strong zone around $1,147.86–$1,200.69 (combining moving averages and trendlines).

While the setup isn’t flawless—volatility has been higher—the mix of steady technical trends and high-growth fundamentals makes NFLX a strong option for momentum investors watching for a clear breakout.

Finding Similar Opportunities

For investors searching for more high-growth momentum stocks with reliable technical setups, the High Growth Momentum Breakout Setups screen offers a selected list of stocks meeting these criteria.

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Disclaimer: This analysis is not investment advice. Always conduct your own research and consider risk management strategies before trading.