Yahoo! Inc (YHOO): 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.

Yahoo ( YHOO) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day down 0.1%. By the end of trading, Yahoo rose 25 cents (1.4%) to $17.51 on average volume. Throughout the day, 22.3 million shares of Yahoo exchanged hands as compared to its average daily volume of 20.7 million shares. The stock ranged in a price between $17.17-$17.56 after having opened the day at $17.18 as compared to the previous trading day's close of $17.26. Other companies within the Internet industry that increased today were: Vocus ( VOCS), up 13.1%, CafePress ( PRSS), up 6.9%, Lionbridge Technologies ( LIOX), up 5.8%, and TechTarget ( TTGT), up 5.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Yahoo! Inc., together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences worldwide. Yahoo has a market cap of $20.42 billion and is part of the technology sector. The company has a P/E ratio of 5.3, below the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Friday. Currently there are six analysts that rate Yahoo a buy, one analyst rates it a sell, and 18 rate it a hold.

TheStreet Ratings rates Yahoo as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and increase in stock price during the past year. 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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

Equifax Breach Reveals Frightening Truth: Companies Can Delay Disclosing Hacks

How Alibaba's 'Genie' Smart Speaker Can Overcome the Amazon Echo's 3-Year Head Start and Still Win

Facebook, Apple, Netflix and Google Have Caught the Flu -- Here's How Not to Get Killed By It

How to Play the Coming 'FANG Flu'

Travis Kalanick and the Terrible, Horrible, No Good, Very Bad Week