Yahoo! Inc (YHOO): Today's Featured Technology 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.

Yahoo ( YHOO) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Yahoo fell 46 cents (-2.3%) to $19.40 on average volume. Throughout the day, 23.7 million shares of Yahoo exchanged hands as compared to its average daily volume of 23.6 million shares. The stock ranged in price between $19.28-$19.58 after having opened the day at $19.56 as compared to the previous trading day's close of $19.86. Other companies within the Technology sector that declined today were: Suntech Power Holdings ( STP), down 20.9%, Dot Hill Systems Corporation ( HILL), down 20.7%, SunPower Corporation ( SPWR), down 12.6%, and LDK Solar Company ( LDK), down 11.2%.
  • 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 $23.39 billion and is part of the internet industry. The company has a P/E ratio of 6.1, below the S&P 500 P/E ratio of 17.7. Shares are down 0.6% year to date as of the close of trading on Friday. Currently there are five analysts that rate Yahoo a buy, one analyst rates it a sell, and 17 rate it a hold.

TheStreet Ratings rates Yahoo as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, attractive valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Zoom Technologies ( ZOOM), up 32%, RF Industries ( RFIL), up 23.2%, Kingtone Wirelessinfo Solution ( KONE), up 19.6%, and eOn Communications Corporation ( EONC), up 18%, were all gainers within the technology sector with Cerner Corporation ( CERN) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.