IAC/InterActiveCorp (IACI): 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.

IAC/InterActiveCorp ( IACI) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 0.3%. By the end of trading, IAC/InterActiveCorp fell $1.35 (-2.9%) to $45.86 on heavy volume. Throughout the day, 2.3 million shares of IAC/InterActiveCorp exchanged hands as compared to its average daily volume of 879,200 shares. The stock ranged in price between $45.41-$47.63 after having opened the day at $47 as compared to the previous trading day's close of $47.21. Other companies within the Internet industry that declined today were: Synacor ( SYNC), down 10.5%, Yelp Inc Class A ( YELP), down 6.8%, ChinaCache International Holdings ( CCIH), down 5.8%, and Web.com Group ( WWWW), down 5%.
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IAC/InterActiveCorp engages in the Internet business in the United States and internationally. IAC/InterActiveCorp has a market cap of $3.99 billion and is part of the technology sector. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Friday. Currently there are seven analysts that rate IAC/InterActiveCorp a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates IAC/InterActiveCorp 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, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Bitauto Holdings ( BITA), up 12.8%, SINA Corporation ( SINA), up 8%, support.com ( SPRT), up 7.4%, and Remark Media ( MARK), up 7.3%, were all gainers within the internet industry with Akamai Technologies ( AKAM) 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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