Momo Inc. (MOMO - Free Report) closed at $36 in the latest trading session, marking a +1.67% move from the prior day. This change outpaced the S&P 500's 0.56% gain on the day. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq lost 0.38%.
Coming into today, shares of the company had lost 9.46% in the past month. In that same time, the Computer and Technology sector lost 8.65%, while the S&P 500 lost 6.76%.
MOMO will be looking to display strength as it nears its next earnings release, which is expected to be November 27, 2018. In that report, analysts expect MOMO to post earnings of $0.54 per share. This would mark year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $536 million, up 51.22% from the prior-year quarter.
MOMO's full-year Zacks Consensus Estimates are calling for earnings of $2.50 per share and revenue of $2.05 billion. These results would represent year-over-year changes of +41.24% and +55.36%, respectively.
It is also important to note the recent changes to analyst estimates for MOMO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. MOMO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MOMO is holding a Forward P/E ratio of 14.15. For comparison, its industry has an average Forward P/E of 31.86, which means MOMO is trading at a discount to the group.
We can also see that MOMO currently has a PEG ratio of 0.62. 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 - Software and Services industry currently had an average PEG ratio of 2.42 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 31% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.