Trade-Ideas LLC identified

Netflix

(

NFLX

) as a pre-market laggard 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 $1.1 billion.
  • NFLX traded 48,323 shares today in the pre-market hours as of 7:26 AM.
  • NFLX is down 5.5% 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 TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. The company operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. NFLX has a PE ratio of 313. Currently there are 17 analysts that rate Netflix a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for Netflix has been 17.2 million shares per day over the past 30 days. Netflix has a market cap of $50.9 billion and is part of the services sector and media industry. The stock has a beta of 1.33 and a short float of 14.2% with 4.90 days to cover. Shares are up 139.2% year-to-date as of the close of trading on Wednesday.

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 solid stock price performance, robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, NFLX's share price has jumped by 145.85%, exceeding the performance of the broader market during that same time frame. Although NFLX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • NFLX's revenue growth trails the industry average of 38.3%. Since the same quarter one year prior, revenues rose by 23.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for NETFLIX INC is currently very high, coming in at 84.59%. 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 1.69% 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 -$195.97 million or 423.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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.