Qihoo boasts best-possible 99 Composite and Earnings Per Share ratings. That puts it among the leading stocks in the Internet-Content industry group, which includes a plethora of current and former market leaders such as Facebook (FB), Google (GOOG) and LinkedIn (LNKD). The group ranked second out of the 197 groups tracked by IBD, as of Thursday.
In addition to strong quarterly results, Qihoo has posted an impressive five-year earnings growth rate of 216%. Profit this year is expected to rise 74% to $1.39 a share, followed by a 58% gain in 2014. Both estimates have been revised higher. Annual return on equity and profit margin are also strong.
The stock has failed to attract highly rated institutional sponsorship, a major problem with some Chinese stocks. Nevertheless, 196 funds owned shares as of Q3, up from 122 at the end of 2012.