Bull’s Eye Report: Sohu.com (SOHU)

Try SOHU for a jump up

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Sohu.com SOHU Internet Software & Services 8.9 +35.82% $61.01

Why We Like The Stock:

Sohu.com (SOHU) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Internet software and services stocks have looked rather attractive lately, as we noted in Friday’s Bull’s Eye report where we featured OpenTable (OPEN). OPEN, Cornerstone On Demand (CSOD), j2 Global (JCOM), SOHU, and others all make the space a good place to play these days. Since the beginning of 2013, SOHU has been straight up. The Chinese tech stock has been operating well above its 50-week moving average since December 2012, and has only had 3 periods of consolidation thus far this year.

While SOHU is currently sitting near the top of what appears to be a range, the stock is no stranger to trading much higher (was $107 in May 2011). So, we would feel comfortable betting on a breakout here as historical pricing suggests SOHU has room to run. We would use the 50-day moving average ($62.89) as a guide, but wouldn’t hold the stock too much lower.

We Would Be Buyers:

At the current price (~$65.93).

Company Profile:

Sohu.com Inc. (Sohu) is a Chinese online media, search, gaming, community and mobile service group. The company operates matrices of Chinese language Web properties, and it operates multi-player online games and Web-based games in the People’s Republic of China. Its businesses consist of the online advertising business, the online game business, the wireless business and the others business, among which online advertising and online games are its core businesses.

Stock Rating: 8.9

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Sohu.com – Last Three Months

sohu 1 Bull's Eye Report: Sohu.com (SOHU)

Sohu.com – Last 12 Months

sohu 2 Bull's Eye Report: Sohu.com (SOHU)

Sohu.com – Last Five Years

sohu 3 Bull's Eye Report: Sohu.com (SOHU)
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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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