Netflix

NFLX
Delayed Nasdaq - 07/18 10:00:00 pm
325.21USD
-10.27%

The stock needs a breather

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David Meurisse
Contributor / Partner

Strategy published on : 07/10/2019 | 12:05

short sell
Target price hit

Entry price : 378.81$
Target : 351.1$
Stop-loss : 387.5$
Potential : 7.32%

The recently observed upswing has shown some signs of exhaustion, which makes for good timing to employ a short strategy with a short term perspective.
Investors should open a short trade and target the $ 351.1.

Summary

● The company has poor fundamentals for a short-term investment strategy.


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The group usually releases upbeat results with huge surprise rates.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The stock is in a well-established, long-term rising trend above the technical support level at 309.1 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 385.03.

● The stock is close to a major daily resistance at USD 385.03, which should be gotten rid of so as to gain new appreciation potential.

● 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 110.09 times its estimated earnings per share for the ongoing year.

● For the last few months, analysts have been revising downwards their earnings forecast.

● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

Zonebourse.com 2019
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