Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Netflix ( NFLX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Netflix as such a stock due to the following factors:

  • NFLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.7 billion.
  • NFLX has traded 553,838 shares today.
  • NFLX is trading at a new lifetime high.

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More details on NFLX:

Netflix, Inc., an Internet television network, engages in the Internet delivery of TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. The company operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. NFLX has a PE ratio of 109.9. Currently there are 15 analysts that rate Netflix a buy, 2 analysts rate it a sell, and 11 rate it a hold.

The average volume for Netflix has been 2.3 million shares per day over the past 30 days. Netflix has a market cap of $28.7 billion and is part of the services sector and media industry. The stock has a beta of 1.73 and a short float of 8.7% with 1.59 days to cover. Shares are up 40.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 26.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for NETFLIX INC is currently very high, coming in at 83.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.61% is above that of the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet & Catalog Retail industry and the overall market on the basis of return on equity, NETFLIX INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$38.46 million or 192.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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