In the latest trading session, Momo Inc. (MOMO - Free Report) closed at $30.97, marking a +1.21% move from the previous day. This change outpaced the S&P 500's 0.73% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 1.34%.
Heading into today, shares of the company had lost 15.66% over the past month, lagging the Computer and Technology sector's gain of 2.97% and the S&P 500's of 0% in that time.
MOMO will be looking to display strength as it nears its next earnings release. In that report, analysts expect MOMO to post earnings of $0.76 per share. This would mark year-over-year growth of 28.81%. Our most recent consensus estimate is calling for quarterly revenue of $650.02 million, up 16.27% from the year-ago period.
It is also important to note the recent changes to analyst estimates for MOMO. 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.
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.
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 remained stagnant within the past month. MOMO is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, MOMO is currently trading at a Forward P/E ratio of 9.07. Its industry sports an average Forward P/E of 21.89, so we one might conclude that MOMO is trading at a discount comparatively.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.