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Bumble Inc. (BMBL) Stock Sinks As Market Gains: Here's Why

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Bumble Inc. (BMBL - Free Report) closed at $4.92 in the latest trading session, marking a -4.28% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.24%.

Shares of the company have depreciated by 14.19% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.61%, and the S&P 500's gain of 6.6%.

Market participants will be closely following the financial results of Bumble Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 31.82% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $239.94 million, down 10.67% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.86 per share and revenue of $959.27 million. These totals would mark changes of +118.66% and -10.49%, respectively, from last year.

Any recent changes to analyst estimates for Bumble Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Bumble Inc. presently features a Zacks Rank of #2 (Buy).

Looking at valuation, Bumble Inc. is presently trading at a Forward P/E ratio of 6. This indicates a discount in contrast to its industry's Forward P/E of 28.63.

Meanwhile, BMBL's PEG ratio is currently 0.22. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.27.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 48, placing it within the top 20% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


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