Canaccord's Monthly Internet Dashboard

Canaccord analyst Michael Graham recently penned the firm’s “Monthly Internet Dashboard,” a monthly analysis of the operating metrics, stock sentiment, and other quantitative factors of companies in the Internet business.

The report provides the most up-to-date statistics on the companies in the space that have the most positive and negative momentum.

Last Month

Internet stocks jumped about 8.0 percent in the month of May, beating the overall market by a wide margin. Overall, the group has outpaced the S&P 500 so far in 2015, but is still lagging the market during the past 12 months.

Valuations

There’s no doubt that Internet stock multiples are lofty, but the most recent growth estimates also come in at a hefty premium to the overall stock market. The price to earnings ratio (P/E) of the S&P 500 currently sits at 15.8x, and its overall average projected growth rate is 12 percent. Large-cap Internet stocks currently have a P/E of 24.5x and a projected growth rate of nearly 100 percent. The P/E of small- and mid-cap Internet stocks is 32.0x, relative to a projected growth rate of 60 percent.

Stock Picks

Based on the in-depth analysis that Canaccord performs on Internet stocks, the report includes the firm’s top positive and negative monthly reads. The stocks with the most positive recent trends include Glu Mobile Inc. GLUU, Amazon.com, Inc. AMZN, GrubHub Inc GRUB and Trupanion Inc TRUP.

The report names HomeAway, Inc. AWAY and Zulily Inc ZU as the two companies with the most negative recent performance trends.

Disclosure: the author holds a short position in Amazon.