In the latest trading session, JOYY (YY) closed at $27.24, marking a +0.93% move from the previous day. This change lagged the S&P 500's 0.99% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.
Heading into today, shares of the social media company had lost 8.45% over the past month, outpacing the Computer and Technology sector's loss of 11.18% and lagging the S&P 500's gain of 7.91% in that time.
JOYY will be looking to display strength as it nears its next earnings release. On that day, JOYY is projected to report earnings of $0.20 per share, which would represent year-over-year growth of 2100%. Meanwhile, our latest consensus estimate is calling for revenue of $599.7 million, down 9.37% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.37 per share and revenue of $2.64 billion. These totals would mark changes of +3.79% and +0.74%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for JOYY. 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.
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. JOYY currently has a Zacks Rank of #3 (Hold).
In terms of valuation, JOYY is currently trading at a Forward P/E ratio of 19.77. This represents a discount compared to its industry's average Forward P/E of 21.01.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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