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 1.4%. By the end of trading, Netflix fell $2.46 (-1.0%) to $237.09 on light volume. Throughout the day, 1,622,866 shares of Netflix exchanged hands as compared to its average daily volume of 4,536,800 shares. The stock ranged in price between $235.00-$240.90 after having opened the day at $240.04 as compared to the previous trading day's close of $239.55. Other companies within the Specialty Retail industry that declined today were: Mecox Lane ( MCOX), down 4.8%, Zale Corporation ( ZLC), down 4.6%, XO Group ( XOXO), down 3.0% and West Marine ( WMAR), down 1.9%.
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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 $13.4 billion and is part of the services sector. The company has a P/E ratio of 569.0, above the S&P 500 P/E ratio of 17.7. Shares are up 158.1% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Netflix a buy, 4 analysts rate it a sell, and 15 rate it a hold.

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

On the positive front, Sport Chalet ( SPCHB), down 33.3%, Sport Chalet ( SPCHA), down 18.3%, Lentuo International ( LAS), down 6.4% and Bluefly ( BFLY), down 5.6% , were all gainers within the specialty retail industry with Tractor Supply ( TSCO) 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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