Momo Inc. (MOMO) closed at $30.63 in the latest trading session, marking a +0.13% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.82%. Elsewhere, the Dow lost 2.21%, while the tech-heavy Nasdaq lost 1.7%.
Coming into today, shares of the company had lost 4.64% in the past month. In that same time, the Computer and Technology sector lost 5.96%, while the S&P 500 lost 2.57%.
Investors will be hoping for strength from MOMO as it approaches its next earnings release, which is expected to be November 27, 2018. On that day, MOMO is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $536 million, up 51.22% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.45 per share and revenue of $2.03 billion. These totals would mark changes of +38.42% and +54%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MOMO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 has moved 3.04% lower. MOMO is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MOMO is holding a Forward P/E ratio of 12.49. This represents a discount compared to its industry's average Forward P/E of 30.87.
It is also worth noting that MOMO currently has a PEG ratio of 0.54. 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 - Software and Services industry currently had an average PEG ratio of 2.33 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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