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 was unchanged today. By the end of trading, Yahoo fell 30 cents (-1.3%) to $22.60 on average volume. Throughout the day, 16.4 million shares of Yahoo exchanged hands as compared to its average daily volume of 20.5 million shares. The stock ranged in price between $22.57-$23 after having opened the day at $22.80 as compared to the previous trading day's close of $22.90. Other companies within the Internet industry that declined today were:
Net Element International (
NETE), down 7.2%,
Blucora (
BCOR), down 6.2%,
LookSmart (
LOOK), down 4.7%, and
Akamai Technologies (
AKAM), down 4.4%.
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Yahoo! Inc., a technology company, provides search, content, and communication tools on the Web and on mobile devices worldwide. Yahoo has a market cap of $25 billion and is part of the technology sector. The company has a P/E ratio of 6.9, below the S&P 500 P/E ratio of 17.7. Shares are up 15.1% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Yahoo a buy, one analyst rates it a sell, and 16 rate it a hold.
TheStreet Ratings rates Yahoo as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
On the positive front,
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%, were all gainers within the internet industry with
Sohu.com (
SOHU) 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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