Netflix Inc. (NFLX): Specialty Retail's Featured Champion Of The Day

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 higher today making it today's featured specialty retail winner. The industry as a whole closed the day up 0.1%. By the end of trading, Netflix rose $9.82 (5.4%) to $190.61 on average volume. Throughout the day, 6.7 million shares of Netflix exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in a price between $183.60-$192.64 after having opened the day at $184 as compared to the previous trading day's close of $180.79. Other companies within the Specialty Retail industry that increased today were: Mecox Lane ( MCOX), up 9.5%, EZCorp ( EZPW), up 3%, Bluefly ( BFLY), up 2.5%, and Birks & Mayors ( BMJ), up 2.4%.
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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 $10.15 billion and is part of the services sector. The company has a P/E ratio of 625.2, above the S&P 500 P/E ratio of 17.7. Shares are up 95.3% year to date as of the close of trading on Monday. 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 negative front, Sport Chalet ( SPCHB), down 5%, Five Below ( FIVE), down 4%, Zumiez ( ZUMZ), down 3.5%, and Perfumania Holdings ( PERF), down 3.4%, were all laggards within the specialty retail industry with Sothebys ( BID) being today's specialty retail industry laggard.

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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