In the latest trading session, Weibo Corporation (WB) closed at $43.55, marking a -0.8% move from the previous day. This change lagged the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.48%.
Coming into today, shares of the company had gained 4.47% in the past month. In that same time, the Computer and Technology sector gained 3.51%, while the S&P 500 gained 3.62%.
Investors will be hoping for strength from WB as it approaches its next earnings release. In that report, analysts expect WB to post earnings of $0.65 per share. This would mark a year-over-year decline of 4.41%. Meanwhile, our latest consensus estimate is calling for revenue of $429.69 million, up 0.73% from the prior-year quarter.
WB's full-year Zacks Consensus Estimates are calling for earnings of $2.82 per share and revenue of $1.90 billion. These results would represent year-over-year changes of +3.3% and +10.52%, respectively.
Investors should also note any recent changes to analyst estimates for WB. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. WB is currently a Zacks Rank #4 (Sell).
Investors should also note WB's current valuation metrics, including its Forward P/E ratio of 15.55. For comparison, its industry has an average Forward P/E of 26.25, which means WB is trading at a discount to the group.
It is also worth noting that WB currently has a PEG ratio of 0.74. 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. The Internet - Content was holding an average PEG ratio of 0.91 at yesterday's closing price.
The Internet - Content industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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