We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vimeo, Inc. (VMEO) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
Have you been paying attention to shares of Vimeo, Inc. (VMEO - Free Report) ? Shares have been on the move with the stock up 39.5% over the past month. The stock hit a new 52-week high of $7.18 in the previous session. Vimeo, Inc. has gained 71.9% since the start of the year compared to the 24.6% move for the Zacks Business Services sector and the 44.5% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2024, Vimeo reported EPS of $0.05 versus consensus estimate of $0.01.
For the current fiscal year, Vimeo is expected to post earnings of $0.14 per share on $411.99 million in revenues. This represents a 7.69% change in EPS on a -1.25% change in revenues. For the next fiscal year, the company is expected to earn $0.12 per share on $420.19 million in revenues. This represents a year-over-year change of -14.29% and 1.99%, respectively.
Valuation Metrics
Vimeo may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Vimeo has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 49.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.3X. On a trailing cash flow basis, the stock currently trades at 42.1X versus its peer group's average of 12.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Vimeo currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Vimeo meets the list of requirements. Thus, it seems as though Vimeo shares could have potential in the weeks and months to come.
How Does VMEO Stack Up to the Competition?
Shares of VMEO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AppLovin Corporation (APP - Free Report) . APP has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. AppLovin Corporation beat our consensus estimate by 31.58%, and for the current fiscal year, APP is expected to post earnings of $4.60 per share on revenue of $4.45 billion.
Shares of AppLovin Corporation have gained 17.5% over the past month, and currently trade at a forward P/E of 48.57X and a P/CF of 67.14X.
The Technology Services industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VMEO and APP, even beyond their own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Vimeo, Inc. (VMEO) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Vimeo, Inc. (VMEO - Free Report) ? Shares have been on the move with the stock up 39.5% over the past month. The stock hit a new 52-week high of $7.18 in the previous session. Vimeo, Inc. has gained 71.9% since the start of the year compared to the 24.6% move for the Zacks Business Services sector and the 44.5% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2024, Vimeo reported EPS of $0.05 versus consensus estimate of $0.01.
For the current fiscal year, Vimeo is expected to post earnings of $0.14 per share on $411.99 million in revenues. This represents a 7.69% change in EPS on a -1.25% change in revenues. For the next fiscal year, the company is expected to earn $0.12 per share on $420.19 million in revenues. This represents a year-over-year change of -14.29% and 1.99%, respectively.
Valuation Metrics
Vimeo may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Vimeo has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 49.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.3X. On a trailing cash flow basis, the stock currently trades at 42.1X versus its peer group's average of 12.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Vimeo currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Vimeo meets the list of requirements. Thus, it seems as though Vimeo shares could have potential in the weeks and months to come.
How Does VMEO Stack Up to the Competition?
Shares of VMEO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AppLovin Corporation (APP - Free Report) . APP has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. AppLovin Corporation beat our consensus estimate by 31.58%, and for the current fiscal year, APP is expected to post earnings of $4.60 per share on revenue of $4.45 billion.
Shares of AppLovin Corporation have gained 17.5% over the past month, and currently trade at a forward P/E of 48.57X and a P/CF of 67.14X.
The Technology Services industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VMEO and APP, even beyond their own solid fundamental situation.