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

.

Rackspace Hosting

(

RAX

) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 0.2%. By the end of trading, Rackspace Hosting rose $1.37 (2.5%) to $57.05 on average volume. Throughout the day, two million shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $55.30-$57.40 after having opened the day at $55.36 as compared to the previous trading day's close of $55.68. Other companies within the Internet industry that increased today were:

Qihoo 360 Technology

(

QIHU

), up 15.9%,

Kayak Software

(

KYAK

), up 11.1%,

Synacor

(

SYNC

), up 10.3%, and

Zynga Inc Class A

(

ZNGA

), up 9.8%.

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Rackspace Hosting, Inc. provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace Hosting has a market cap of $7.23 billion and is part of the

technology

sector. The company has a P/E ratio of 84.5, above the average computer software & services industry P/E ratio of 79.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 29.8% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Rackspace Hosting a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures 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.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider

First Trust Dow Jones Internet Idx

(

FDN

) while those bearish on the internet industry could consider

ProShares Ultra Short Technology

(

REW

).

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