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Criteo S.A. (CRTO) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Criteo S.A. (CRTO) closed at $18.57, marking a +0.05% move from the previous day. The stock lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.

Prior to today's trading, shares of the company had lost 6.31% over the past month. This has lagged the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 2.47% in that time.

CRTO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, down 22.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $225.90 million, down 1.88% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.42 per share and revenue of $980.21 million. These totals would mark changes of -2.81% and +1.53%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CRTO. 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.

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.

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 remained stagnant. CRTO is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note CRTO's current valuation metrics, including its Forward P/E ratio of 7.66. This represents a discount compared to its industry's average Forward P/E of 29.64.

It is also worth noting that CRTO currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRTO's industry had an average PEG ratio of 4.4 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 49, which puts it in the top 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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