3 Internet Stocks Moving The Industry Upward

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 55 points (0.3%) at 16,707 as of Thursday, Aug. 14, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,989 issues advancing vs. 996 declining with 174 unchanged.

The Internet industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.4%. Top gainers within the Internet industry included ChinaNet Online Holdings ( CNET), up 25.9%, Geeknet ( GKNT), up 2.5%, TheStreet ( TST), up 1.6%, Taomee Holdings ( TAOM), up 1.9% and Tremor Video ( TRMR), up 2.0%.

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

TheStreet ( TST) is one of the companies that pushed the Internet industry higher today. TheStreet was up $0.04 (1.6%) to $2.58 on light volume. Throughout the day, 27,039 shares of TheStreet exchanged hands as compared to its average daily volume of 56,900 shares. The stock ranged in a price between $2.48-$2.58 after having opened the day at $2.48 as compared to the previous trading day's close of $2.54.

TheStreet has a market cap of $87.8 million and is part of the technology sector. Shares are up 12.4% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Geeknet ( GKNT) was up $0.29 (2.5%) to $12.08 on average volume. Throughout the day, 8,110 shares of Geeknet exchanged hands as compared to its average daily volume of 9,800 shares. The stock ranged in a price between $11.79-$12.08 after having opened the day at $11.84 as compared to the previous trading day's close of $11.79.

Geeknet, Inc., through its subsidiary, ThinkGeek, Inc., operates as an online retailer for the global geek community in the United States. Geeknet has a market cap of $79.4 million and is part of the technology sector. Shares are down 34.7% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Geeknet a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Geeknet as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on GKNT go as follows:

  • 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. Compared to other companies in the Internet & Catalog Retail industry and the overall market, GEEKNET INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GEEKNET INC is rather low; currently it is at 18.24%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.89% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$8.63 million or 44.82% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • GKNT has underperformed the S&P 500 Index, declining 20.68% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • GEEKNET INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GEEKNET INC swung to a loss, reporting -$0.03 versus $0.26 in the prior year. For the next year, the market is expecting a contraction of 1500.0% in earnings (-$0.48 versus -$0.03).

You can view the full analysis from the report here: Geeknet 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.

ChinaNet Online Holdings ( CNET) was another company that pushed the Internet industry higher today. ChinaNet Online Holdings was up $0.22 (25.9%) to $1.07 on heavy volume. Throughout the day, 858,274 shares of ChinaNet Online Holdings exchanged hands as compared to its average daily volume of 79,400 shares. The stock ranged in a price between $0.85-$1.19 after having opened the day at $0.90 as compared to the previous trading day's close of $0.85.

ChinaNet Online Holdings, Inc., through its subsidiaries, provides business-to-businesses Internet services for small and medium enterprises (SMEs) sales networks in the People's Republic of China. ChinaNet Online Holdings has a market cap of $22.2 million and is part of the technology sector. Shares are up 1.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate ChinaNet Online Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates ChinaNet Online Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CNET go as follows:

  • CHINANET ONLINE HOLDINGS's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINANET ONLINE HOLDINGS swung to a loss, reporting -$0.01 versus $0.13 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 2326.7% when compared to the same quarter one year ago, falling from $0.03 million to -$0.67 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Media industry and the overall market, CHINANET ONLINE HOLDINGS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINANET ONLINE HOLDINGS is currently lower than what is desirable, coming in at 26.26%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -12.88% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.35 million or 213.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: ChinaNet Online Holdings 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.

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.

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