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Why the Market Dipped But Bumble Inc. (BMBL) Gained Today

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Bumble Inc. (BMBL - Free Report) ended the recent trading session at $5.34, demonstrating a +1.91% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.76%.

Shares of the company have depreciated by 25.25% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.34%, and the S&P 500's gain of 1.14%.

Investors will be eagerly watching for the performance of Bumble Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.39, up 11.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $244.56 million, down 10.62% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.79 per share and revenue of $970.56 million. These totals would mark changes of +61.17% and -9.43%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Bumble Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Bumble Inc. possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Bumble Inc. is presently trading at a Forward P/E ratio of 23.47. This expresses a discount compared to the average Forward P/E of 28.74 of its industry.

Meanwhile, BMBL's PEG ratio is currently 0.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.99 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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