Glu Mobile (GLUU) closed at $11 in the latest trading session, marking a -1.52% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.21%.
Prior to today's trading, shares of the mobile game maker had gained 3.52% over the past month. This has lagged the Consumer Discretionary sector's gain of 7.02% and the S&P 500's gain of 4.65% in that time.
GLUU will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2019. The company is expected to report EPS of $0.05, up 66.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $90.16 million, up 4.47% from the year-ago period.
GLUU's full-year Zacks Consensus Estimates are calling for earnings of $0.33 per share and revenue of $445.58 million. These results would represent year-over-year changes of +230% and +15.86%, respectively.
Investors should also note any recent changes to analyst estimates for GLUU. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. GLUU is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, GLUU is holding a Forward P/E ratio of 34.37. Its industry sports an average Forward P/E of 22.46, so we one might conclude that GLUU is trading at a premium comparatively.
It is also worth noting that GLUU currently has a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Toys - Games - Hobbies industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.
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