Zillow Inc (Z): Today's Featured Internet Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Zillow ( Z) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Zillow fell $0.83 (-1.2%) to $66.76 on light volume. Throughout the day, 423,985 shares of Zillow exchanged hands as compared to its average daily volume of 741,000 shares. The stock ranged in price between $66.00-$68.74 after having opened the day at $67.98 as compared to the previous trading day's close of $67.59. Other companies within the Internet industry that declined today were: Travelzoo ( TZOO), down 8.1%, Angie's List ( ANGI), down 4.1%, LookSmart ( LOOK), down 3.0% and Mercadolibre ( MELI), down 2.5%.

Zillow, Inc. engages in the operation of a real estate and home-related information marketplace on mobile and the Web in the United States. Zillow has a market cap of $1.8 billion and is part of the technology sector. Shares are up 143.6% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Zillow a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Zillow 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation.

On the positive front, Deltathree ( DDDC), up 12.5%, SINA Corporation ( SINA), up 8.2%, MeetMe ( MEET), up 7.3% and Sify Technologies ( SIFY), up 6.2% , were all gainers within the internet industry with TripAdvisor ( TRIP) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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