Specialty Retail Industry Underperformer Of The Day: Netflix Inc. (NFLX)

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 0.5%. By the end of trading, Netflix fell $5.74 (-3.1%) to $176.69 on average volume. Throughout the day, 4.6 million shares of Netflix exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $176.10-$185.18 after having opened the day at $183.90 as compared to the previous trading day's close of $182.43. Other companies within the Specialty Retail industry that declined today were: EZCorp ( EZPW), down 6.1%, DGSE Companies ( DGSE), down 3.7%, Cencosud ( CNCO), down 2.7%, and Lentuo International ( LAS), down 2.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $10.6 billion and is part of the services sector. The company has a P/E ratio of 652.7, above the S&P 500 P/E ratio of 17.7. Shares are up 97% 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 positive front, Mecox Lane ( MCOX), up 16.2%, Sport Chalet ( SPCHB), up 13.4%, Medifast ( MED), up 4%, and Books-A-Million ( BAMM), up 3.8%, were all gainers within the specialty retail industry with PetSmart ( PETM) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Some of Trump's NFL Owner Friends Side With Players in Dispute With President

7 Essential Rules for Investing in Tech Stocks

Politics Hang Heavy Over FCC's Review of Sinclair-Tribune Media

Microsoft's New Xbox One X Shows It's Done Trying to Please Everyone

Cord Cutters Aren't Just Leaving Pay-TV Because of Price