Back to top

Image: Bigstock

Match Group (MTCH) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Match Group (MTCH - Free Report) closed the most recent trading day at $135.60, moving +0.86% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.48%.

Heading into today, shares of the media and internet company had lost 13.59% over the past month, lagging the Retail-Wholesale sector's loss of 2.72% and the S&P 500's loss of 0.04% in that time.

Match Group will be looking to display strength as it nears its next earnings release. In that report, analysts expect Match Group to post earnings of $0.63 per share. This would mark year-over-year growth of 14.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $818.67 million, up 25.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.48 per share and revenue of $3 billion, which would represent changes of +2.48% and -2.57%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Match Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Match Group currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Match Group currently has a Forward P/E ratio of 54.21. Its industry sports an average Forward P/E of 54.33, so we one might conclude that Match Group is trading at a discount comparatively.

It is also worth noting that MTCH currently has a PEG ratio of 3.45. 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. MTCH's industry had an average PEG ratio of 2.56 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 11% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Match Group Inc. (MTCH) - free report >>

Published in