Chart of the Day: Netflix - Is it Worth It?

The Chart of the Day belongs to the streaming content company Netflix (NFLX).   I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on  1/10 the stock gained 11.47%.

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services in the United States. The company has approximately 222 million paid members in 190 countries. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 38.83+Weighted Alpha
• 1.15% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 15 new highs and up 23.74% in the last month
• Relative Strength Index  71.70%
• Recently traded at $366.02 with 50 day moving average of $309.72

Fundamental Factors:

• Market Cap $163 billion
• P/E 36.57%
• Revenue expected to grow by 8.90% this year and another 11.80% next year
• Earnings estimated to increase 14.90% this year, an additional 26.20%  next year and continue to increase at an annual rate of 15.97% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analysts have 20 strong buy, 2 buy, 17 hold and 3 underperform opinions in place on this stock
• Analysts have price targets from $215 to $440 (wide range) with an average of $351.11
• The individual investors Following the stock on Motley Fool voted 9,405 to 1,931 for the stock to beat the market with the more experienced investors voting 3,370 to 105 for the same result
• Value Line gives it a 1 timeliness rating putting it in the top 6% of stocks covered
• CFRA's MarketScope give it a 4 out of 5 star Buy rating with a 12 month price target of $390
• 490,460 investors monitor the stock on Seeking Alpha

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in  the next 72 hours.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.