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 or Stephanie Link.

All three major indices traded up today with the

Dow Jones Industrial Average

(

^DJI

) trading up 112 points (0.7%) at 16,695 as of Monday, May 12, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,429 issues advancing vs. 632 declining with 133 unchanged.

The Internet industry as a whole closed the day up 3.7% versus the S&P 500, which was up 1.0%. Top gainers within the Internet industry included

LookSmart

(

LOOK

), up 36.1%,

Innodata

(

INOD

), up 9.4%,

ChinaNet Online Holdings

(

CNET

), up 9.0%,

Synacor

(

SYNC

), up 2.2% and

eLong

(

LONG

), up 2.1%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

ChinaNet Online Holdings

(

CNET

) is one of the companies that pushed the Internet industry higher today. ChinaNet Online Holdings was up $0.07 (9.0%) to $0.85 on light volume. Throughout the day, 23,900 shares of ChinaNet Online Holdings exchanged hands as compared to its average daily volume of 269,300 shares. The stock ranged in a price between $0.78-$0.86 after having opened the day at $0.78 as compared to the previous trading day's close of $0.78.

ChinaNet Online Holdings, Inc., through its subsidiaries, provides business-to-businesses Internet services for small and medium enterprises (SMEs) sales networks in the People's Republic of China. ChinaNet Online Holdings has a market cap of $17.2 million and is part of the technology sector. Shares are down 8.3% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate ChinaNet Online Holdings a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates ChinaNet Online Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on CNET go as follows:

  • CNET's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CNET has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 14.7%. Since the same quarter one year prior, revenues fell by 27.3%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • 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 Media industry and the overall market, CHINANET ONLINE HOLDINGS's return on equity is below that of both the industry average and the S&P 500.
  • CHINANET ONLINE HOLDINGS reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINANET ONLINE HOLDINGS reported lower earnings of $0.13 versus $0.15 in the prior year.

You can view the full analysis from the report here:

ChinaNet Online Holdings Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Innodata

(

INOD

) was up $0.28 (9.4%) to $3.25 on heavy volume. Throughout the day, 49,335 shares of Innodata exchanged hands as compared to its average daily volume of 21,700 shares. The stock ranged in a price between $2.95-$3.27 after having opened the day at $2.95 as compared to the previous trading day's close of $2.97.

Innodata Inc. provides business process, information technology, and professional services that are focused on digital enablement. The company operates in two segments, Content Services (CS) and Innodata Advanced Data Solutions (IADS). Innodata has a market cap of $78.9 million and is part of the technology sector. Shares are up 21.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Innodata a buy, no analysts rate it a sell, and 1 rates it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Innodata as a

hold

. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on INOD go as follows:

  • INNODATA INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, INNODATA INC swung to a loss, reporting -$0.43 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.43).
  • INOD, with its decline in revenue, slightly underperformed the industry average of 16.3%. Since the same quarter one year prior, revenues fell by 16.8%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • INOD has underperformed the S&P 500 Index, declining 7.08% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for INNODATA INC is currently lower than what is desirable, coming in at 26.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.34% significantly trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the IT Services industry. The net income has significantly decreased by 40.2% when compared to the same quarter one year ago, falling from $0.32 million to $0.19 million.

You can view the full analysis from the report here:

Innodata Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

LookSmart

(

LOOK

) was another company that pushed the Internet industry higher today. LookSmart was up $0.44 (36.1%) to $1.66 on heavy volume. Throughout the day, 65,839 shares of LookSmart exchanged hands as compared to its average daily volume of 2,800 shares. The stock ranged in a price between $1.40-$1.80 after having opened the day at $1.44 as compared to the previous trading day's close of $1.22.

LookSmart, Ltd. provides search and display advertising network solutions in the United States, Europe, the Middle East, and Africa. LookSmart has a market cap of $8.9 million and is part of the technology sector. Shares are down 40.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate LookSmart a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates LookSmart as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LOOK go as follows:

  • LOOK's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.65%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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. Compared to other companies in the Internet Software & Services industry and the overall market, LOOKSMART LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • LOOK, with its very weak revenue results, has greatly underperformed against the industry average of 21.3%. Since the same quarter one year prior, revenues plummeted by 64.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has slightly increased to -$1.26 million or 6.52% when compared to the same quarter last year. Despite an increase in cash flow, LOOKSMART LTD's cash flow growth rate is still lower than the industry average growth rate of 23.22%.
  • The gross profit margin for LOOKSMART LTD is rather high; currently it is at 55.73%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -129.71% is in-line with the industry average.

You can view the full analysis from the report here:

LookSmart Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 or Stephanie Link.