Here's Why Netflix (NFLX) is a Strong Momentum Stock
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
Netflix (NFLX)
Netflix is considered a pioneer in the streaming space. The company evolved from a small DVD-rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and a fortified international footprint. At the end of the second quarter of 2024, the company had 277.65 million paid subscribers globally.
NFLX boasts a Momentum Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Netflix has seen some interesting price action recently; the stock is down 2.5% over the past one week and up 0.5% over the past four weeks. And in the last one-year period, NFLX has gained 83.5%. As for the stock's trading volume, 2,767,165 shares on average were traded over the last 20 days.
A company's earnings performance is important for momentum investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for NFLX, while the Zacks Consensus Estimate has increased $0 to $19.78 per share. NFLX also boasts an average earnings surprise of 5.7%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding NFLX to their portfolios.
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