HomeAway Inc (AWAY): 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

HomeAway ( AWAY) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 2.0%. By the end of trading, HomeAway rose $0.53 (1.8%) to $30.05 on average volume. Throughout the day, 1,299,620 shares of HomeAway exchanged hands as compared to its average daily volume of 1,163,800 shares. The stock ranged in a price between $29.55-$30.49 after having opened the day at $29.93 as compared to the previous trading day's close of $29.52. Other companies within the Internet industry that increased today were: Deltathree ( DDDC), up 46.3%, Blucora ( BCOR), up 21.1%, Selectica ( SLTC), up 8.7% and Trulia ( TRLA), up 8.5%.
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HomeAway, Inc., together with its subsidiaries, operates an online marketplace for the vacation rental industry worldwide. Its vacation rental properties include homes, condominiums, villas, and cabins to the public on a nightly, weekly, or monthly basis. HomeAway has a market cap of $2.5 billion and is part of the technology sector. The company has a P/E ratio of 139.8, above the S&P 500 P/E ratio of 17.7. Shares are up 33.4% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate HomeAway a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates HomeAway 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

On the negative front, LinkedIn ( LNKD), down 12.9%, Autobytel ( ABTL), down 3.8%, Move ( MOVE), down 3.6% and Synacor ( SYNC), down 3.5% , were all laggards within the internet industry with SINA Corporation ( SINA) 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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