NEW YORK (
TheStreet) -- A very widely followed stock that continues to slide:
(NFLX - Get Report). Even after a decent earnings report, the company can't seem to get any creditability with the investing public. During the last month, the stock has dropped an additional 15.77%, as is evidenced by this hourly trading graph provided by
Over the last six month, the stock hasn't even been able to compete against the market. The market, as measured by the Value Line Index, dropped 5% in the last six months, while Netflix tanked 49%.
Is there any chance at all that the stock's price will recover?
Netflix provides Internet subscription services for TV shows and movies in the U.S. and internationally. The company offers its subscribers a chance to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices. It also provides standard definition DVDs and Blu-Ray discs to its subscribers. The company was founded in 1997 and is headquartered in Los Gatos, CA.
Factors to Consider
Barchart technical indicators:
80% Barchart technical sell signal
Trend Spotter sell signal
Trading below its 20-, 50- and 100-day moving averages
Lost 15.77% last month
Lost 28.09% last quarter
78.59% off its one-year high
Relative Strength Index 29.72%
Recently traded at 57.73, which is way below its 50-day moving average of 70.53
Widely followed by Wall Street where 21 brokerage firms have assigned 33 analysts to issue opinions on the issue
Analysts project that revenue will increase by 12.70% this year and another 15.00% next year
Earnings are estimated to decrease by 99.80% this year but increase by 2,425.00% next year and continue to increase by an annual rate of 16.58% over the next 5 years (That large figure is correct, as the stock pulls out of negative terrain.)
These consensus numbers resulted in 2 strong buy, 6 buy, 18 hold, 6 under perform and just 1 sell recommendation for clients to consider
If the analysts' projections are correct, they predict investors should see a 21% to 25% annual total return over the next 5 years
The P/E ratio is 29.69 compared to the 14.20% P/E of the market
No dividend is paid
The company has an A balance sheet rating
The public does not seem happy with its pricing policies
Profits from the U.S. divisions are being used to fund expansion in the overseas markets -- time will tell if this is a good strategy
Widely followed by both the professional and individual investors
As pointed out above, recommendations from Wall Street are mixed
Some popular individual investors' Web site are still very high on the stock
Short interest remains high but level
Jim Cramer has not been kind to this stock
TheStreet Ratings give the stock only a C ranking
TheStreet Ratings: B
Revenue projected to increase by 45.10% this year and 27.80% next year
Earnings estimated to increase by 18.00% this year and 16.10% next year
TheStreet Ratings: C+
Revenue projected to increase by 30.90% this year and 28.30% next year
Earnings estimated to decrease by 10.90% this year but increase by 132.00% next year
TheStreet Ratings: A
Revenue projected to increase by 20.20% this year and 14.90% next year
Earnings estimated to increase by 15.80% this year and 16.60% next year
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