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 down 0.1%. By the end of trading, IAC/InterActiveCorp fell 45 cents (-1.1%) to $41.26 on average volume. Throughout the day, 1.2 million shares of IAC/InterActiveCorp exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $40.90-$42.13 after having opened the day at $41.63 as compared to the previous trading day's close of $41.71. Other companies within the Internet industry that declined today were: Friendfinder Networks ( FFN), down 6.5%, Innodata ( INOD), down 4.1%, BroadVision ( BVSN), down 3.6%, and LookSmart ( LOOK), down 3.3%.
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IAC/InterActiveCorp engages in the Internet business in the United States and internationally. IAC/InterActiveCorp has a market cap of $3.45 billion and is part of the technology sector. The company has a P/E ratio of 22.9, above the S&P 500 P/E ratio of 17.7. Shares are down 11.7% year to date as of the close of trading on Friday. Currently there are eight analysts that rate IAC/InterActiveCorp a buy, no analysts rate it a sell, and three 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Local ( LOCM), up 4.9%, VirnetX ( VHC), up 4.6%, Trulia ( TRLA), up 4.5%, and Bitauto Holdings ( BITA), up 4.2%, were all gainers within the internet industry with Youku Tudou ( YOKU) 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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