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JOYY (YY) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

JOYY (YY) closed the most recent trading day at $63.22, moving -1.48% from the previous trading session. This move lagged the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq lost 0.54%.

Prior to today's trading, shares of the social media company had lost 0.33% over the past month. This has lagged the Computer and Technology sector's gain of 5.9% and the S&P 500's gain of 3.22% in that time.

Investors will be hoping for strength from YY as it approaches its next earnings release. In that report, analysts expect YY to post earnings of $0.71 per share. This would mark a year-over-year decline of 62.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 56.73% from the year-ago period.

Investors should also note any recent changes to analyst estimates for YY. Recent revisions tend to reflect the latest near-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. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. YY is currently a Zacks Rank #3 (Hold).

Digging into valuation, YY currently has a Forward P/E ratio of 14.12. This represents a discount compared to its industry's average Forward P/E of 27.88.

Investors should also note that YY has a PEG ratio of 2.32 right now. 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. The Internet - Services industry currently had an average PEG ratio of 2.17 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% 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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