Yahoo! Inc (YHOO): 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.

Yahoo ( YHOO) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 1.8%. By the end of trading, Yahoo fell 49 cents (-2.4%) to $19.63 on heavy volume. Throughout the day, 34.6 million shares of Yahoo exchanged hands as compared to its average daily volume of 22.2 million shares. The stock ranged in price between $19.57-$19.99 after having opened the day at $19.92 as compared to the previous trading day's close of $20.12. Other companies within the Internet industry that declined today were: Net Element International ( NETE), down 5.8%, LiveDeal ( LIVE), down 4.6%, Youku Tudou ( YOKU), down 4.5%, and LookSmart ( LOOK), down 3%.
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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 $24.02 billion and is part of the technology sector. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are down 1% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Yahoo a buy, one analyst rates it a sell, and 20 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.

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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