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Momo Inc. (MOMO) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Momo Inc. (MOMO - Free Report) closed at $37.59, marking a -1.13% move from the previous day. This change lagged the S&P 500's 2.15% gain on the day. At the same time, the Dow added 2.17%, and the tech-heavy Nasdaq gained 2.89%.
Heading into today, shares of the company had lost 17.37% over the past month, lagging the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 5.16% in that time.
MOMO will be looking to display strength as it nears its next earnings release, which is expected to be November 27, 2018. On that day, MOMO is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 22.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $536 million, up 51.22% from the year-ago period.
MOMO's full-year Zacks Consensus Estimates are calling for earnings of $2.50 per share and revenue of $2.05 billion. These results would represent year-over-year changes of +41.24% and +55.34%, respectively.
It is also important to note the recent changes to analyst estimates for MOMO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MOMO is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MOMO is holding a Forward P/E ratio of 15.19. Its industry sports an average Forward P/E of 30.85, so we one might conclude that MOMO is trading at a discount comparatively.
Investors should also note that MOMO has a PEG ratio of 0.66 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software and Services was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Momo Inc. (MOMO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Momo Inc. (MOMO - Free Report) closed at $37.59, marking a -1.13% move from the previous day. This change lagged the S&P 500's 2.15% gain on the day. At the same time, the Dow added 2.17%, and the tech-heavy Nasdaq gained 2.89%.
Heading into today, shares of the company had lost 17.37% over the past month, lagging the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 5.16% in that time.
MOMO will be looking to display strength as it nears its next earnings release, which is expected to be November 27, 2018. On that day, MOMO is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 22.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $536 million, up 51.22% from the year-ago period.
MOMO's full-year Zacks Consensus Estimates are calling for earnings of $2.50 per share and revenue of $2.05 billion. These results would represent year-over-year changes of +41.24% and +55.34%, respectively.
It is also important to note the recent changes to analyst estimates for MOMO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MOMO is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MOMO is holding a Forward P/E ratio of 15.19. Its industry sports an average Forward P/E of 30.85, so we one might conclude that MOMO is trading at a discount comparatively.
Investors should also note that MOMO has a PEG ratio of 0.66 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software and Services was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.