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Fiverr International (FVRR) Stock Sinks As Market Gains: Here's Why

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Fiverr International (FVRR - Free Report) closed the latest trading day at $21.80, indicating a -1.09% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.39%.

Prior to today's trading, shares of the online marketplace for freelance services had lost 20.72% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.73% and the S&P 500's gain of 2.97% in that time.

The upcoming earnings release of Fiverr International will be of great interest to investors. The company's upcoming EPS is projected at $0.52, signifying a 44.44% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $92.45 million, reflecting a 5.1% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.39 per share and a revenue of $383.28 million, demonstrating changes of +22.56% and +6.06%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fiverr International. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 30.19% higher within the past month. As of now, Fiverr International holds a Zacks Rank of #3 (Hold).

Digging into valuation, Fiverr International currently has a Forward P/E ratio of 9.23. This indicates a discount in contrast to its industry's Forward P/E of 20.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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