In the latest trading session, YY (YY) closed at $67.83, marking a -1.42% move from the previous day. This change lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.15%.
Coming into today, shares of the social media company had gained 13.74% in the past month. In that same time, the Computer and Technology sector lost 2.32%, while the S&P 500 lost 0.57%.
Wall Street will be looking for positivity from YY as it approaches its next earnings report date. This is expected to be March 4, 2019. In that report, analysts expect YY to post earnings of $1.99 per share. This would mark a year-over-year decline of 12.33%. Meanwhile, our latest consensus estimate is calling for revenue of $678.77 million, up 21.78% from the prior-year quarter.
YY's full-year Zacks Consensus Estimates are calling for earnings of $7.42 per share and revenue of $2.27 billion. These results would represent year-over-year changes of +6% and +30.91%, respectively.
It is also important to note the recent changes to analyst estimates for YY. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 5.87% lower. YY is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, YY is currently trading at a Forward P/E ratio of 9.28. This represents a discount compared to its industry's average Forward P/E of 21.87.
Also, we should mention that YY has a PEG ratio of 0.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Content industry currently had an average PEG ratio of 0.82 as of yesterday's close.
The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 23% 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.
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