In the latest trading session, Momo Inc. (MOMO - Free Report) closed at $27.84, marking a +1.7% move from the previous day. This change outpaced the S&P 500's 0.85% gain on the day. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 1.08%.
Heading into today, shares of the company had lost 24.52% over the past month, lagging the Computer and Technology sector's loss of 4.99% and the S&P 500's loss of 2.06% in that time.
MOMO will be looking to display strength as it nears its next earnings release, which is expected to be May 28, 2019. On that day, MOMO is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 20.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $533.07 million, up 22.51% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.91 per share and revenue of $2.47 billion, which would represent changes of +23.83% and +22.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MOMO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. MOMO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MOMO is holding a Forward P/E ratio of 9.39. For comparison, its industry has an average Forward P/E of 30.9, which means MOMO is trading at a discount to the group.
Investors should also note that MOMO has a PEG ratio of 0.39 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. MOMO's industry had an average PEG ratio of 4.39 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 42, which puts it in the top 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.