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Match Group (MTCH) Gains But Lags Market: What You Should Know

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Match Group (MTCH - Free Report) closed the most recent trading day at $123.81, moving +0.81% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.64%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.45%.

Prior to today's trading, shares of the media and internet company had lost 16.31% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.31% and the S&P 500's loss of 0.83% in that time.

Wall Street will be looking for positivity from Match Group as it approaches its next earnings report date. On that day, Match Group is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 14.55%. Meanwhile, our latest consensus estimate is calling for revenue of $818.67 million, up 25.68% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.48 per share and revenue of $3 billion. These totals would mark changes of +2.48% and -2.57%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Match Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Match Group is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Match Group has a Forward P/E ratio of 49.52 right now. Its industry sports an average Forward P/E of 50, so we one might conclude that Match Group is trading at a discount comparatively.

Also, we should mention that MTCH has a PEG ratio of 3.15. 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 - Commerce industry currently had an average PEG ratio of 2.13 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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