1. As of noon trading, Netflix ( NFLX) is down $3.66 (-2.2%) to $165.70 on light volume Thus far, 1.8 million shares of Netflix exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $165.35-$171.90 after having opened the day at $171.00 as compared to the previous trading day's close of $169.36.

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 $9.8 billion and is part of the services sector. The company has a P/E ratio of 606.4, above the S&P 500 P/E ratio of 17.7. Shares are up 89.9% year to date as of the close of trading on Wednesday.

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. Get the full Netflix Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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