Qihoo 360 Technology Co. Ltd. (QIHU): Today's Featured Internet 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.

Qihoo 360 Technology ( QIHU) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Qihoo 360 Technology fell $1.43 (-6.2%) to $21.55 on heavy volume. Throughout the day, 4.8 million shares of Qihoo 360 Technology exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $21.04-$22.76 after having opened the day at $22.74 as compared to the previous trading day's close of $22.98. Other companies within the Internet industry that declined today were: Deltathree ( DDDC), down 13.4%, Tucows ( TCX), down 6.2%, Yelp Inc Class A ( YELP), down 4.5%, and China Finance Online ( JRJC), down 4%.

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Qihoo 360 Technology has a market cap of $2.75 billion and is part of the technology sector. The company has a P/E ratio of 67.9, below the average internet industry P/E ratio of 171 and above the S&P 500 P/E ratio of 17.7. Shares are up 46.3% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Qihoo 360 Technology a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Qihoo 360 Technology as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.

On the positive front, Jacada ( JCDA), up 8.7%, Liquidity Service ( LQDT), up 7.3%, Crexendo ( EXE), up 7.1%, and Selectica ( SLTC), up 5.3%, were all gainers within the internet industry with LinkedIn ( LNKD) being today's featured internet industry leader.

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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