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What Should You Know About Momo Inc’s (MOMO) Future?

Momo Inc (NASDAQ:MOMO) is predicted to grow its earnings per share by a high double-digit 88.83% over the next three years. With the recent EPS being $1.342, expected growth will push the upcoming EPS to $2.533. I am going to look at the latest data on MOMO to assess whether this expected growth is reasonable. See our latest analysis for MOMO

Exciting times ahead for MOMO

According to the analysts covering the company, in a few years should bring some good growth prospects for Momo. Expectation from the stock’s 19 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $1.342 to $2.533 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 88.83% over the next few years, which is an optimistic outlook in the near term. In the same period we will see the revenue grow rapidly from $981M to $2,168M and profit is predicted to grow from $262M to $494M in the next couple of years, growing by 88.83%. At this level of revenue and profit, margins are predicted to be extremely healthy as well.

NasdaqGS:MOMO Past Future Earnings Nov 9th 17
NasdaqGS:MOMO Past Future Earnings Nov 9th 17

Basis for the growth

The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. MOMO’s triple-digit earnings growth the past couple of years indicates that the company’s past performance is supportive of a strong continuation. This means MOMO has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.

Next Steps:

For MOMO, there are three key factors you should look at:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is MOMO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MOMO is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MOMO? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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