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Why Fiverr International (FVRR) Dipped More Than Broader Market Today

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In the latest close session, Fiverr International (FVRR - Free Report) was down 2.12% at $23.51. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.67%.

The online marketplace for freelance services's stock has dropped by 0.78% in the past month, exceeding the Retail-Wholesale sector's loss of 2.39% and lagging the S&P 500's gain of 4.06%.

Market participants will be closely following the financial results of Fiverr International in its upcoming release. The company's upcoming EPS is projected at $0.7, signifying a 9.38% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $108.04 million, up 8.44% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.8 per share and revenue of $432.78 million, indicating changes of +17.65% and +10.55%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Fiverr International. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.69% upward. Fiverr International currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Fiverr International is presently being traded at a Forward P/E ratio of 8.59. This signifies a discount in comparison to the average Forward P/E of 21.5 for its industry.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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