TripAdvisor Inc (TRIP): Today's Featured Internet Underperformer

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.

TripAdvisor ( TRIP) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.7%. By the end of trading, TripAdvisor fell $1.49 (-2.8%) to $51.75 on average volume. Throughout the day, 2.1 million shares of TripAdvisor exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $51.64-$53 after having opened the day at $52.56 as compared to the previous trading day's close of $53.24. Other companies within the Internet industry that declined today were: Deltathree ( DDDC), down 22.5%, LiveDeal ( LIVE), down 10.5%, QuinStreet ( QNST), down 8.4%, and Remark Media ( MARK), down 5.7%.
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TripAdvisor, Inc., an online travel company, provides trip advisory services. TripAdvisor has a market cap of $6.82 billion and is part of the technology sector. The company has a P/E ratio of 38.3, above the S&P 500 P/E ratio of 17.7. Shares are up 24.8% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate TripAdvisor a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates TripAdvisor as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, LookSmart ( LOOK), up 5.2%, HomeAway ( AWAY), up 4.4%, TheStreet ( TST), up 3.8%, and AOL ( AOL), up 3.1%, were all gainers within the internet industry with Yahoo ( YHOO) 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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