Momo Inc. (MOMO - Free Report) closed at $39.09 in the latest trading session, marking a +0.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.19%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the company had gained 5.41% over the past month. This has lagged the Computer and Technology sector's gain of 6.59% and outpaced the S&P 500's gain of 3.72% in that time.
Investors will be hoping for strength from MOMO as it approaches its next earnings release. The company is expected to report EPS of $0.76, up 28.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $650.02 million, up 16.27% from the prior-year quarter.
Any recent changes to analyst estimates for MOMO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 remained stagnant. MOMO is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that MOMO has a Forward P/E ratio of 11.55 right now. This represents a discount compared to its industry's average Forward P/E of 24.79.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% 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.