Yahoo! Inc (YHOO): 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.

Yahoo ( YHOO) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Yahoo fell $0.50 (-1.3%) to $37.81 on average volume. Throughout the day, 15,776,569 shares of Yahoo exchanged hands as compared to its average daily volume of 17,565,500 shares. The stock ranged in price between $37.68-$38.33 after having opened the day at $38.06 as compared to the previous trading day's close of $38.30. Other companies within the Internet industry that declined today were: HealthStream ( HSTM), down 8.5%, ChinaNet Online Holdings ( CNET), down 8.3%, Care.com ( CRCM), down 8.1% and Bankrate ( RATE), down 6.2%.

Yahoo! Inc., a technology company, provides search, content, and communication tools on the Web and on mobile devices worldwide. Yahoo has a market cap of $38.8 billion and is part of the technology sector. Shares are down 5.3% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Yahoo a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Yahoo as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, ChinaCache International Holdings ( CCIH), up 20.0%, Internet Initiative Japan ( IIJI), up 7.3%, Jiayuan.com International ( DATE), up 5.8% and LiveDeal ( LIVE), up 5.3% , were all gainers within the internet industry with Facebook ( FB) 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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