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Why Bumble Inc. (BMBL) Outpaced the Stock Market Today

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In the latest trading session, Bumble Inc. (BMBL - Free Report) closed at $6.68, marking a +2.45% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.27%.

Shares of the company witnessed a gain of 31.72% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.36%, and the S&P 500's gain of 3.97%.

Investors will be eagerly watching for the performance of Bumble Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.36, marking a 63.64% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $242.08 million, indicating a 9.88% downward movement from the same quarter last year.

BMBL's full-year Zacks Consensus Estimates are calling for earnings of $1.04 per share and revenue of $960.68 million. These results would represent year-over-year changes of +122.56% and -10.35%, respectively.

Investors should also note any recent changes to analyst estimates for Bumble Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.19% higher. At present, Bumble Inc. boasts a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Bumble Inc. is at present trading with a Forward P/E ratio of 6.3. Its industry sports an average Forward P/E of 27.71, so one might conclude that Bumble Inc. is trading at a discount comparatively.

Meanwhile, BMBL's PEG ratio is currently 0.22. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.15.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% of all 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.

To follow BMBL in the coming trading sessions, be sure to utilize Zacks.com.


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