AOL Inc. (AOL): Today's Featured Internet Winner

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 higher today making it today's featured internet winner. The industry as a whole closed the day down 2.9%. By the end of trading, AOL rose $0.79 (1.7%) to $46.87 on heavy volume. Throughout the day, 3,686,924 shares of AOL exchanged hands as compared to its average daily volume of 1,428,900 shares. The stock ranged in a price between $46.25-$49.91 after having opened the day at $47.24 as compared to the previous trading day's close of $46.08. Other companies within the Internet industry that increased today were: Remark Media ( MARK), up 4.1%, Internet Initiative Japan ( IIJI), up 2.1% and Zynga ( ZNGA), up 2.0%.

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 $3.6 billion and is part of the technology sector. The company has a P/E ratio of 36.7, above the S&P 500 P/E ratio of 17.7. Shares are down 1.2% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate AOL a buy, 1 analyst rates it a sell, and 5 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 negative front, Net Element ( NETE), down 11.6%, ChinaCache International Holdings ( CCIH), down 9.6%, Digital River ( DRIV), down 8.1% and Autobytel ( ABTL), down 7.6% , were all laggards within the internet industry with Baidu ( BIDU) 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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