Amazon may be joining the Dow Jones Industrial Average, but that doesn't mean the FANG gang has lost its touch. In fact, two members of the club — Netflix and Meta stock — just got into a top screen for rising profit bets.
After a blockbuster year in 2023, a follow-up act may seem elusive for Meta. Yet IBD's stock screener shows that Wall Street has raised its profit estimates for the Facebook parent. Meanwhile, Investor's Business Daily's screen for rising profit estimates also shows content streaming giant Netflix gets high marks.
The two companies comprise half of the FANG lineup of stocks. The other two are Amazon and Google-parent Alphabet. It's hard to tell from the current company names where the FANG comes from, but as a reminder, the acronym stood for Facebook, Amazon, Netflix and Google.
Meta Stock's Meteoric Rise
Meta stock gained 194% in 2023 and added 10% to that in January, In February, it has rallied higher by 20% and also has formed a three-weeks-tight pattern with a buy point of 488.62. That shows the stock has been able to hold all of its gains since reporting fourth-quarter earnings on Feb. 1.
Sales and earnings accelerated for the third straight quarter. Sales grew 25% to $40.1 billion while earnings per share of $5.33 showed a steep rise of 203%. For the first quarter, Meta expects sales of $36 billion at the midpoint. The company also declared a dividend of 50 cents per share payable to shareholders on record as of Feb. 22.
IBD technical ratings for Meta stock are stellar. Its Composite Rating is an ideal 99 while the EPS Rating stands at 96. Its Relative Strength Rating is 97.
Mutual funds own 48% of outstanding shares, and more funds have been buying shares of Meta over the past four quarters. The stock also holds an Accumulation/Distribution Rating of B which show recent bullish bets on the stock from fund managers.
Wall Street Is Bullish On Netflix Profits
Meanwhile, Netflix stock has formed a three-weeks-tight pattern and is near a buy point of 579.64, according to IBD MarketSmith.
Sales and earnings have accelerated in the three most recent quarters. Fourth-quarter sales grew 12% to $8.8 billion while earnings per share of $2.11 spiked from 12 cents in the prior year quarter.
Netflix has an ideal Composite Rating of 99 and a near-ideal EPS Rating of 98. The Relative Strength Rating of 93 shows that Netflix has outperformed 93% of stocks in the IBD database.
Mutual funds own 51% of outstanding shares. More funds have been net buyers over the past six quarters. A top notch Accumulation/Distribution Rating of A also shows support from big money in recent weeks.
Another Stock Wall Street Likes
Analysts are also bullish on Inter Parfums. The stock is forming a handle with a 156.75 buy point.
Sales growth has ranged between 7% and 47% over the past seven quarters. Sales grew 31% to $368 million in the while earnings per share of $1.66 rose 28%.
Like Netflix and Meta stock, Inter Parfums has high ratings. Its Composite Rating is 97 while its EPS Rating stands at 96. The Relative Strength Rating is an adequate 84.
Mutual funds own 60% of outstanding shares of the perfume and cosmetics maker while bullish support from funds in recent weeks is shown in the Accumulation/Distribution Rating of B.
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