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Glu Mobile (GLUU) Outpaces Stock Market Gains: What You Should Know

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Glu Mobile (GLUU - Free Report) closed at $11.32 in the latest trading session, marking a +0.35% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.6%.

Heading into today, shares of the mobile game maker had gained 22.61% over the past month, outpacing the Consumer Discretionary sector's loss of 0.05% and the S&P 500's gain of 2.39% in that time.

GLUU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.05, up 66.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $90.16 million, up 4.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.33 per share and revenue of $445.58 million, which would represent changes of +230% and +15.86%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GLUU. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GLUU is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, GLUU is currently trading at a Forward P/E ratio of 34.71. This represents a premium compared to its industry's average Forward P/E of 22.17.

Investors should also note that GLUU has a PEG ratio of 2.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GLUU's industry had an average PEG ratio of 1.85 as of yesterday's close.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.

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