EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Reprint Email

Yahoo! Inc Stock Buy Recommendation Reiterated (YHOO)

By TheStreet Wire 01/22/13 - 09:02 AM EST

Find out if (YHOO) is in Cramer's Portfolio.

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.

NEW YORK (TheStreet) -- Yahoo (Nasdaq:YHOO) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- . The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, attractive valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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

Highlights from the ratings report include:

Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 977.5% when compared to the same quarter one year prior, rising from $293.29 million to $3,160.24 million.
The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Internet Software & Services industry and the overall market, YAHOO INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
Net operating cash flow has significantly increased by 195.99% to $1,046.31 million when compared to the same quarter last year. In addition, YAHOO INC has also vastly surpassed the industry average cash flow growth rate of 1.21%.

Yahoo! Inc., together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences worldwide. Yahoo has a market cap of $23.74 billion and is part of the technology sector and internet industry. The company has a P/E ratio of 6.2, below the S&P 500 P/E ratio of 17.7. Shares are up 0.9% year to date as of the close of trading on Thursday.

You can view the full Yahoo Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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

For more information on Yahoo! Inc click any of the following:

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:

$2.5+ million portfolio
Large-cap and dividend focus
Intraday trade alerts from Cramer
Weekly roundups

TheStreet Quant Ratings

TRY IT FREE

New! $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:

Buy, hold, or sell recommendations for over 4,300 stocks
Unlimited research reports on your favorite stocks
A custom stock screener
Upgrade/downgrade alerts

Stocks Under $10

TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:

Model portfolio
Stocks trading below $10
Intraday trade alerts
Weekly roundups

Dividend Stock Advisor

TRY IT FREE

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:

Diversified model portfolio of dividend stocks
Alerts when market news affect the portfolio
Bi-weekly updates with exact steps to take - BUY, HOLD, SELL

Real Money Pro

TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:

Real Money + Doug Kass + 15 more Wall Street Pros
Intraday commentary & news
Ultra-actionable trading ideas

Options Profits

TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.