Momo Inc. (MOMO) closed at $23.68 in the latest trading session, marking a +1.28% move from the prior day. This change outpaced the S&P 500's 2.71% loss on the day. Meanwhile, the Dow lost 2.91%, and the Nasdaq, a tech-heavy index, lost 2.21%.
Coming into today, shares of the company had lost 26.22% in the past month. In that same time, the Computer and Technology sector lost 6.7%, while the S&P 500 lost 8.68%.
Investors will be hoping for strength from MOMO as it approaches its next earnings release, which is expected to be March 6, 2019. On that day, MOMO is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 1.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $535 million, up 38.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.37 per share and revenue of $2.02 billion, which would represent changes of +33.9% and +53.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MOMO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 8.01% lower within the past month. MOMO is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that MOMO has a Forward P/E ratio of 9.85 right now. For comparison, its industry has an average Forward P/E of 25.37, which means MOMO is trading at a discount to the group.
Investors should also note that MOMO has a PEG ratio of 0.41 right now. 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. Internet - Software and Services stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.
The Internet - Software and 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 36% 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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