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Glu Mobile (GLUU) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Glu Mobile (GLUU - Free Report) closed at $9.09, marking a +1.91% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.39%. Elsewhere, the Dow gained 1.57%, while the tech-heavy Nasdaq added 1.56%.

Investors will be hoping for strength from GLUU as it approaches its next earnings release, which is expected to be February 9, 2021. On that day, GLUU is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.62 million, up 14.96% from the year-ago period.

Investors should also note any recent changes to analyst estimates for GLUU. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% lower. GLUU currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, GLUU is holding a Forward P/E ratio of 16.27. For comparison, its industry has an average Forward P/E of 26.03, which means GLUU is trading at a discount to the group.

Meanwhile, GLUU's PEG ratio is currently 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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