Momo Inc. (MOMO) closed at $30.01 in the latest trading session, marking a -0.13% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 1.57%, and the Nasdaq, a tech-heavy index, lost 1.89%.
Prior to today's trading, shares of the company had lost 14.92% over the past month. This has lagged the Computer and Technology sector's gain of 6.01% and the S&P 500's gain of 2.35% in that time.
Wall Street will be looking for positivity from MOMO as it approaches its next earnings report date. The company is expected to report EPS of $0.76, up 28.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $650.02 million, up 16.27% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MOMO. These recent revisions tend to reflect the evolving nature of short-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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. MOMO currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that MOMO has a Forward P/E ratio of 8.91 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.31.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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