Today's Pre-Market Mover With Heavy Volume: Netflix (NFLX)

Trade-Ideas LLC identified Netflix (NFLX) as a pre-market mover with heavy volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Netflix

(

NFLX

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Netflix as such a stock due to the following factors:

  • NFLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.2 billion.
  • NFLX traded 2.4 million shares today in the pre-market hours as of 9:16 AM, representing 16.7% of its average daily volume.

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More details on NFLX:

Netflix, Inc., an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. The Company operates in three segments: Domestic streaming, International streaming and Domestic DVD. NFLX has a PE ratio of 338. Currently there are 16 analysts that rate Netflix a buy, 3 analysts rate it a sell, and 8 rate it a hold.

The average volume for Netflix has been 13.2 million shares per day over the past 30 days. Netflix has a market cap of $42.0 billion and is part of the services sector and media industry. The stock has a beta of 0.97 and a short float of 8.7% with 2.40 days to cover. Shares are down 14% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Netflix as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • NFLX's revenue growth trails the industry average of 43.0%. Since the same quarter one year prior, revenues rose by 24.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for NETFLIX INC is currently very high, coming in at 85.91%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.41% trails the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Internet & Catalog Retail industry and the overall market, NETFLIX INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$228.59 million or 79.45% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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