3 Stocks Improving Performance Of The Internet Industry

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 62 points (0.4%) at 17,114 as of Tuesday, July 22, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,161 issues advancing vs. 822 declining with 149 unchanged.

The Internet industry as a whole closed the day up 1.9% versus the S&P 500, which was up 0.5%. Top gainers within the Internet industry included ChinaNet Online Holdings ( CNET), up 9.1%, Net Element ( NETE), up 56.5%, Local ( LOCM), up 2.8%, Jiayuan.com International ( DATE), up 2.6% and Spark Networks ( LOV), up 1.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Jiayuan.com International ( DATE) is one of the companies that pushed the Internet industry higher today. Jiayuan.com International was up $0.14 (2.6%) to $5.60 on average volume. Throughout the day, 69,507 shares of Jiayuan.com International exchanged hands as compared to its average daily volume of 86,900 shares. The stock ranged in a price between $5.38-$5.70 after having opened the day at $5.45 as compared to the previous trading day's close of $5.46.

Jiayuan.com International Ltd. operates an online dating platform in the People's Republic of China. It operates through three segments: Online Services, Personalized Matchmaking Services, and Events and Other Services. Jiayuan.com International has a market cap of $178.5 million and is part of the technology sector. Shares are down 10.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Jiayuan.com International a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Jiayuan.com International 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on DATE go as follows:

  • DATE's revenue growth has slightly outpaced the industry average of 12.1%. Since the same quarter one year prior, revenues rose by 20.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • DATE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, DATE has a quick ratio of 2.33, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for JIAYUAN.COM INTL LTD is rather high; currently it is at 60.38%. Regardless of DATE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DATE's net profit margin of -10.35% significantly underperformed when compared to the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, JIAYUAN.COM INTL LTD's return on equity is below that of both the industry average and the S&P 500.
  • The share price of JIAYUAN.COM INTL LTD has not done very well: it is down 21.60% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

You can view the full analysis from the report here: Jiayuan.com International Ratings Report

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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