Vipshop Holdings Ltd (VIPS): 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.

Vipshop Holdings ( VIPS) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 0.1%. By the end of trading, Vipshop Holdings rose $9.37 (6.2%) to $159.29 on average volume. Throughout the day, 1,052,720 shares of Vipshop Holdings exchanged hands as compared to its average daily volume of 1,396,300 shares. The stock ranged in a price between $145.70-$160.00 after having opened the day at $147.51 as compared to the previous trading day's close of $149.92. Other companies within the Internet industry that increased today were: LookSmart ( LOOK), up 10.7%, MeetMe ( MEET), up 8.8%, Tucows ( TCX), up 5.4% and Internap Network Services ( INAP), up 4.3%.

Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People's Republic of China. Vipshop Holdings has a market cap of $8.4 billion and is part of the services sector. The company has a P/E ratio of 135.4, above the S&P 500 P/E ratio of 17.7. Shares are up 79.2% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Vipshop Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Vipshop Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, LiveDeal ( LIVE), down 7.0%, VirnetX ( VHC), down 6.8%, Tremor Video ( TRMR), down 6.0% and eLong ( LONG), down 5.0% , were all laggards within the internet industry with Groupon ( GRPN) 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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