AOL Inc. (AOL): 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.

AOL ( AOL) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 1.0%. By the end of trading, AOL fell $0.52 (-1.2%) to $43.82 on light volume. Throughout the day, 669,555 shares of AOL exchanged hands as compared to its average daily volume of 1,621,500 shares. The stock ranged in price between $43.75-$44.80 after having opened the day at $44.31 as compared to the previous trading day's close of $44.34. Other companies within the Internet industry that declined today were: Wix.com ( WIX), down 3.8%, Internet Initiative Japan ( IIJI), down 3.5%, Innodata ( INOD), down 3.1% and HealthStream ( HSTM), down 2.5%.

AOL Inc., a Web services brand company, offers a suite of online content, products, and services to consumers, advertisers, publishers, and subscribers worldwide. AOL has a market cap of $3.5 billion and is part of the technology sector. The company has a P/E ratio of 35.0, above the S&P 500 P/E ratio of 17.7. Shares are up 49.8% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate AOL a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates AOL as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, China Finance Online ( JRJC), up 9.8%, Trulia ( TRLA), up 8.5%, Tremor Video ( TRMR), up 8.2% and Vipshop Holdings ( VIPS), up 6.7% , were all gainers within the internet industry with IAC/InterActiveCorp ( IACI) 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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