Netflix Inc. (NFLX): Today's Featured Specialty Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Netflix ( NFLX) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Netflix fell $4.25 (-2.3%) to $180.45 on light volume. Throughout the day, three million shares of Netflix exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $179.01-$184.52 after having opened the day at $184 as compared to the previous trading day's close of $184.70. Other companies within the Specialty Retail industry that declined today were: Dick's Sporting Goods ( DKS), down 10.8%, Sport Chalet ( SPCHB), down 9.7%, Mecox Lane ( MCOX), down 5.2%, and Hibbett Sports ( HIBB), down 3%.
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Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $10.17 billion and is part of the services sector. The company has a P/E ratio of 626.1, above the S&P 500 P/E ratio of 17.7. Shares are up 96.1% year to date as of the close of trading on Friday. Currently there are six analysts that rate Netflix a buy, four analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the positive front, Lentuo International ( LAS), up 20.2%, Bluefly ( BFLY), up 8.2%, 1-800 Flowers.com ( FLWS), up 4.1%, and Medifast ( MED), up 3.4%, were all gainers within the specialty retail industry with Signet Jewelers ( SIG) being today's featured specialty retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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