In the latest trading session, GrubHub (GRUB - Free Report) closed at $95.29, marking a +0.7% move from the previous day. This move outpaced the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 1.04%.
Heading into today, shares of the online food ordering service had lost 27.5% over the past month, lagging the Computer and Technology sector's loss of 7.79% and the S&P 500's loss of 6.28% in that time.
Investors will be hoping for strength from GRUB as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect GRUB to post earnings of $0.28 per share. This would mark a year-over-year decline of 24.32%. Meanwhile, our latest consensus estimate is calling for revenue of $288.67 million, up 40.76% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $1 billion, which would represent changes of +46.67% and +47.09%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GRUB. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 13.83% lower. GRUB is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, GRUB is currently trading at a Forward P/E ratio of 53.74. This represents a premium compared to its industry's average Forward P/E of 21.85.
Also, we should mention that GRUB has a PEG ratio of 2.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Delivery Services was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.