Strong Performance Today In Internet From Yahoo! Inc (YHOO)

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 higher today making it today's featured internet winner. The industry as a whole closed the day up 0.5%. By the end of trading, Yahoo rose 28 cents (1.2%) to $24.48 on light volume. Throughout the day, 12.3 million shares of Yahoo exchanged hands as compared to its average daily volume of 19.2 million shares. The stock ranged in a price between $24.31-$24.57 after having opened the day at $24.41 as compared to the previous trading day's close of $24.20. Other companies within the Internet industry that increased today were: Deltathree ( DDDC), up 42.9%, Points International ( PCOM), up 6.5%, Groupon ( GRPN), up 5.2%, and TripAdvisor ( TRIP), up 3.6%.
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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 $26.24 billion and is part of the technology sector. The company has a P/E ratio of 7.3, below the S&P 500 P/E ratio of 17.7. Shares are up 21.6% year to date as of the close of trading on Wednesday. Currently there are 10 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 negative front, SouFun Holdings ( SFUN), down 5.4%, Internet Initiative Japan ( IIJI), down 4.7%, Net Element International ( NETE), down 4.7%, and VirnetX ( VHC), down 4.2%, were all laggards within the internet industry with IAC/InterActiveCorp ( IACI) 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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