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Shares of Netflix (NASDAQ:NFLX) popped up by 16% on Thursday after the popular video streaming service released strong quarterly earnings. Following the stellar results, what are the prospects for further gains? And how does NFLX stack up compared to other entertainment-related stocks?
As of Friday, the day after company announced its results, Seeking Alpha analysts generally have a wait-and-see approach on the stock, with a consensus Hold rating. NFLX has an SA analyst rating of 3.33 on a scale of one to five. Wall Street analysts have a more upbeat outlook, giving the stock an average analyst rating of 4.06, just over the line for a consensus Buy recommendation.
Looking at Seeking Alpha’s Quant Ratings, the stock gets a 3.47 on that system of grading quantitative measures. NFLX receives high grades for growth, momentum, and profitability, but those are undercut by D- grade for valuation.
Given the cautious approach by SA analysts, Netflix (NFLX) fails to hit the top 10 list of the movie and entertainment stocks, part of the broader Communication Services sector. For reference there are 35 stocks that make up the movie and entertainment segment.
Here is the list of the top 10 movie and entertainment stocks, based on Seeking Alpha analyst ratings (any rating of at least 4.00 constitutes a consensus Buy rating):
- No. 10: The Walt Disney Company (DIS) – SA analyst rating 3.66
- No. 9: Warner Bros. Discovery, Inc. (WBD) – SA analyst rating 3.93
- No. 8: Vivid Seats (SEAT) – SA analyst rating 4.00
- No. 7: Reservoir Media (RSVR) – SA analyst rating 4.00
- No. 6: Manchester United (MANU) – SA analyst rating 4.00
- No. 5: LiveOne, Inc. (LVO) – SA analyst rating 4.00
- No. 4: Lions Gate Entertainment Corp. (LGF.A) (LGF.B) – SA analyst rating 4.00
- No. 3: IQIYI Inc (IQ) – SA analyst rating 4.00
- No. 2: Cinemark Holdings, Inc. (CNK) – SA analyst rating 4.00
- No. 1: Madison Square Garden Sports Corp. (MSGS) – SA analyst rating 5.00
