NETFLIX INC (NASDAQ:NFLX) Presents a Potent Mix of Strong Growth and Bullish Technical Setup

Investors looking for companies with solid growth paths often use a two-part method that mixes fundamental and technical review. This process finds stocks showing sound financial condition and speeding up earnings while also displaying encouraging price movements that indicate possible breakouts. By concentrating on companies with excellent growth traits that are also going through helpful technical patterns, investors try to seize chances where bettering fundamentals match with favorable market movement.

NETFLIX INC (NASDAQ:NFLX) presents an interesting example of this investment method, currently showing both solid growth fundamentals and a noteworthy technical situation that deserves more detailed review.

Fundamental Strength Review

Netflix's fundamental picture shows a company performing well in the competitive streaming field. The company's fundamental analysis report displays notable scores in several important areas:

• Growth Rating: 8/10
• Profitability Rating: 9/10
• Financial Health Rating: 8/10

The growth numbers are especially significant, with the company showing:

• Earnings Per Share growth of 35.48% over the last year
• Revenue increase of 15.41% per year
• Estimated future EPS growth of 22.09% from analyst forecasts

Profitability is particularly good, with Netflix doing better than most industry rivals in key margins:

• Return on Invested Capital of 24.41% is higher than 98% of entertainment companies
• Operating Margin of 29.14% is better than 97% of industry competitors
• Steady positive earnings and cash flow production over several years

Technical Situation Review

The technical analysis view shows a notable arrangement in spite of some recent difficulties. While both short and long-term trends currently display negative movement, the stock has a Setup Rating of 7/10, signaling possibility for a change in direction.

Important technical points include:

• Price movement contained within a set area between support and resistance
• Support area set between $1,088.99 and $1,099.75, made by several trendlines and moving averages
• Resistance found between $1,225.26 and $1,274.17
• Lowered instability hinting at possible energy collecting for a directional move

The present pattern looks like a possible base development, which frequently comes before major breakouts when paired with solid fundamentals. This technical arrangement becomes especially important considering Netflix's shown capacity to maintain growth while bettering profitability.

Strategic Fit

The mix of Netflix's fundamental soundness and technical situation fits well with the growth stock selection plan. Solid growth numbers confirm the company has the operational quality to continue movement, while the technical containment indicates the stock could be gathering energy for its next important move. The company's outstanding profitability and financial condition offer some safety against loss, lowering risk during times of market instability.

For growth investors, Netflix presents an interesting chance where numerical strength meets technical possibility. The company's leading market place, steady performance, and new content plan back continued growth, while the present technical pattern indicates the market might be undervaluing near-term potential.

Investors wanting to find similar chances can review more outcomes using our Strong Growth Stocks with Good Technical Setup Ratings screen, which methodically finds companies displaying this potent mix of traits.

Disclaimer: This review is for information only and does not make up investment guidance, suggestion, or backing of any security. Investors should do their own investigation and talk with financial consultants before making investment choices. Past results do not ensure future outcomes.