AOL Inc. (AOL): 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.

AOL ( AOL) 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, AOL rose 49 cents (1.6%) to $31.73 on average volume. Throughout the day, two million shares of AOL exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $30.99-$32.02 after having opened the day at $31.04 as compared to the previous trading day's close of $31.24. Other companies within the Internet industry that increased today were: Friendfinder Networks ( FFN), up 10.7%, Innodata ( INOD), up 10.4%, ClickSoftware Technologies ( CKSW), up 7.8%, and MeetMe ( MEET), up 7.8%.
  • 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.

AOL Inc. operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Its business spans online content, products, and services for consumers, publishers, and advertisers. AOL has a market cap of $2.67 billion and is part of the technology sector. The company has a P/E ratio of three, below the S&P 500 P/E ratio of 17.7. Shares are up 111.3% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate AOL a buy, two analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates AOL as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Remark Media ( MARK), down 8.2%, Qihoo 360 Technology ( QIHU), down 6.6%, LookSmart ( LOOK), down 6.2%, and support.com ( SPRT), down 5.6%, were all laggards within the internet industry with Akamai Technologies ( AKAM) being today's internet industry laggard.

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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

Twitter Is Too Valuable to Not Be Acquired by Disney

Cramer: I Want to See Lower Prices From the 5% Dividend Yield Gang

Yahoo! CEO Mayer Not Joining New Leadership Team Under Verizon

Here's Who Killed It in October Dealmaking Advice

Media Consolidation Could be on Menu as Moguls Descend on Sun Valley for Allen Conference