Back to top

Image: Bigstock

YY Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, YY (YY - Free Report) closed at $78.69, marking a +1.87% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq added 0.91%.

Heading into today, shares of the social media company had lost 22.97% over the past month, lagging the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 2.11% in that time.

YY will be looking to display strength as it nears its next earnings release, which is expected to be November 13, 2018. In that report, analysts expect YY to post earnings of $1.82 per share. This would mark year-over-year growth of 14.47%. Our most recent consensus estimate is calling for quarterly revenue of $589.83 million, up 26.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.53 per share and revenue of $2.29 billion, which would represent changes of +7.57% and +31.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for YY. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 10.94% lower within the past month. YY is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note YY's current valuation metrics, including its Forward P/E ratio of 11.09. Its industry sports an average Forward P/E of 25, so we one might conclude that YY is trading at a discount comparatively.

We can also see that YY currently has a PEG ratio of 0.49. 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. The Internet - Content industry currently had an average PEG ratio of 2.4 as of yesterday's close.

The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 118, which puts it in the top 46% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


JOYY Inc. Sponsored ADR (YY) - free report >>