Sohu.com Inc (SOHU): 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.

Sohu.com ( SOHU) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole was unchanged today. By the end of trading, Sohu.com rose 68 cents (1.5%) to $45.54 on average volume. Throughout the day, 485,638 shares of Sohu.com exchanged hands as compared to its average daily volume of 645,400 shares. The stock ranged in a price between $44.54-$45.75 after having opened the day at $44.56 as compared to the previous trading day's close of $44.86. Other companies within the Internet industry that increased today were: Zynga Inc Class A ( ZNGA), up 10.1%, Points International ( PCOM), up 6.6%, Vipshop Holdings Ltd ADR ( VIPS), up 5.8%, and ChinaCache International Holdings ( CCIH), up 5.5%.
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Sohu.com Inc. provides Chinese online media, search, gaming, community, and mobile services in the People's Republic of China. Sohu.com has a market cap of $1.7 billion and is part of the technology sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are down 6.1% year to date as of the close of trading on Friday. Currently there are four analysts that rate Sohu.com a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Sohu.com as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, deteriorating net income and a generally disappointing performance in the stock itself.

On the negative front, Net Element International ( NETE), down 7.2%, Blucora ( BCOR), down 6.2%, LookSmart ( LOOK), down 4.7%, and Akamai Technologies ( AKAM), down 4.4%, were all laggards within the internet industry with Yahoo ( YHOO) 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).

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