4 Internet Stocks Pushing Industry Growth

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 20 points (-0.1%) at 15,298 as of Wednesday, June 19, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,604 issues advancing vs. 474 declining with 57 unchanged.

The Internet industry currently sits up 1.1% versus the S&P 500, which is down 0.17.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry higher today:

4. Mercadolibre ( MELI) is one of the companies pushing the Internet industry higher today. As of noon trading, Mercadolibre is up $2.64 (2.32) to $116.26 on average volume Thus far, 349,605 shares of Mercadolibre exchanged hands as compared to its average daily volume of 568,300 shares. The stock has ranged in price between $114.77-$117.56 after having opened the day at $116.17 as compared to the previous trading day's close of $113.62.

MercadoLibre, Inc. hosts online commerce platforms in Latin America. Its services are designed to provide users with mechanisms for buying, selling, paying, collecting, generating leads, and comparing listings through e-commerce transactions. Mercadolibre has a market cap of $5.0 billion and is part of the technology sector. The company has a P/E ratio of 50.7, above the S&P 500 P/E ratio of 17.7. Shares are up 45.1% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Mercadolibre as a buy. 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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Mercadolibre Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Qihoo 360 Technology ( QIHU) is up $1.10 (2.34) to $48.18 on average volume Thus far, 874,407 shares of Qihoo 360 Technology exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $47.25-$48.87 after having opened the day at $47.61 as compared to the previous trading day's close of $47.08.

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Qihoo 360 Technology has a market cap of $5.8 billion and is part of the technology sector. The company has a P/E ratio of 124.9, above the S&P 500 P/E ratio of 17.7. Shares are up 58.6% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Qihoo 360 Technology a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Qihoo 360 Technology 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation. Get the full Qihoo 360 Technology Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, TripAdvisor ( TRIP) is up $0.63 (0.99) to $64.48 on light volume Thus far, 334,476 shares of TripAdvisor exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $63.37-$64.53 after having opened the day at $63.41 as compared to the previous trading day's close of $63.85.

TripAdvisor, Inc., an online travel company, provides trip advisory services. TripAdvisor has a market cap of $8.4 billion and is part of the technology sector. The company has a P/E ratio of 44.4, above the S&P 500 P/E ratio of 17.7. Shares are up 53.5% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate TripAdvisor a buy, 1 analyst rates it a sell, and 12 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. Get the full TripAdvisor Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, LinkedIn ( LNKD) is up $3.21 (1.79) to $182.63 on average volume Thus far, 895,039 shares of LinkedIn exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $178.04-$183.40 after having opened the day at $178.92 as compared to the previous trading day's close of $179.42.

LinkedIn Corporation operates an online professional network. LinkedIn has a market cap of $16.3 billion and is part of the technology sector. The company has a P/E ratio of 507.4, above the S&P 500 P/E ratio of 17.7. Shares are up 56.3% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate LinkedIn a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates LinkedIn as a sell. Among the areas we feel are negative, one of the most important has been premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full LinkedIn Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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