Google Inc. (GOOG): Today's Featured Internet Winner

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.

Google ( GOOG) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 1.4%. By the end of trading, Google rose $15.16 (2.2%) to $706.04 on average volume. Throughout the day, 2.6 million shares of Google exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $690.54-$709 after having opened the day at $693.09 as compared to the previous trading day's close of $690.88. Other companies within the Internet industry that increased today were: Friendfinder Networks ( FFN), up 19.4%, LiveDeal ( LIVE), up 17.2%, support.com ( SPRT), up 12.8%, and Blucora ( BCOR), up 6.5%.
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Google Inc., a technology company, maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. Google has a market cap of $181.33 billion and is part of the technology sector. The company has a P/E ratio of 26.8, above the average internet industry P/E ratio of 20.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Wednesday. Currently there are 29 analysts that rate Google a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Google as a buy. 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, reasonable valuation levels, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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