Trade-Ideas LLC identified

Netflix

(

NFLX

) as a pre-market leader 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 $1.5 billion.
  • NFLX traded 25,373 shares today in the pre-market hours as of 7:38 AM.
  • NFLX is up 2.1% today from yesterday's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NFLX with the Ticky from Trade-Ideas. See the FREE profile for NFLX NOW at Trade-Ideas

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 327. 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 14.3 million shares per day over the past 30 days. Netflix has a market cap of $40.6 billion and is part of the services sector and media industry. The stock has a beta of 0.97 and a short float of 9.1% with 2.57 days to cover. Shares are down 14.4% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and premium valuation.

Highlights from the ratings report include:

  • NFLX's revenue growth trails the industry average of 42.5%. 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.