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Criteo S.A. (CRTO) Outpaces Stock Market Gains: What You Should Know

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Criteo S.A. (CRTO - Free Report) closed at $18.46 in the latest trading session, marking a +0.87% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq gained 0.57%.

Heading into today, shares of the company had lost 7.34% over the past month, lagging the Computer and Technology sector's loss of 2.4% and the S&P 500's gain of 0.1% in that time.

Investors will be hoping for strength from CRTO as it approaches its next earnings release. In that report, analysts expect CRTO to post earnings of $0.41 per share. This would mark a year-over-year decline of 22.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $225.90 million, down 1.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $980.21 million. These totals would mark changes of -5.22% and +1.53%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CRTO. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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 remained stagnant within the past month. CRTO currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note CRTO's current valuation metrics, including its Forward P/E ratio of 7.76. For comparison, its industry has an average Forward P/E of 29.94, which means CRTO is trading at a discount to the group.

It is also worth noting that CRTO currently has a PEG ratio of 1.55. 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. The Internet - Software and Services was holding an average PEG ratio of 4.94 at yesterday's closing price.

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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