Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese Internet company (NASDAQ:SOHU) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Sohu's business, and see what CAPS investors are saying about the stock right now.

Sohu facts

Headquarters (founded)

Beijing, China (1996)

Market Cap

$1.77 billion


Internet Information Providers

TTM Revenue

$372.82 million


Founder/CEO Charles Zhang
CFO Carol Yu

Return on Equity (average, last three years)



Giant Interactive (NYSE:GA)

CAPS members bullish on SOHU also bullish on


CAPS members bearish on SOHU also bearish on


Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 208 of the 219 All-Star members who have rated Sohu -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include ypcheng and FoolSolo, both of whom are ranked in the top 15% of our community.

Last month, ypcheng tapped Sohu as a smart way to play a Far East turnaround:

I happen to believe that Chinese market will be the first to recover because its economic stimulus package as well as growing internal consumption. Comparing to our negative GDP now, theirs is still in the high-end single digit. This stock is the leading Internet player which should lead the recovery.

In a pitch from earlier this month, FoolSolo elaborates:

[Sohu] has been on my rule breaker screen, showing great value and strong growth potential. Financially and fundamentally, [Sohu] meets all my requirements, they have no apparent debt, good cashflow, plenty of cash on hand, and admirable sales and earnings growth.

As with all China stocks, you just can't always count on the numbers, or the business climate they operate in, so the risk factors are substantial. But I'm betting these guys will serve their huge potential market sufficiently to keep their growth going strong.

What do you think about Sohu, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Sohu, Baidu, and Google are Motley Fool Rule Breakers picks. SINA and Apple are selections of Stock Advisor. The Fool's disclosure policy always gets a perfect score.