In the latest trading session, GrubHub (GRUB – Free Report) closed at $74.98, marking a +1.53% move from the previous day. This change outpaced the S&P 500’s 0.5% gain on the day. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 0.76%.
Coming into today, shares of the online food ordering service had lost 10.45% in the past month. In that same time, the Computer and Technology sector gained 3.93%, while the S&P 500 gained 2.53%.
GRUB will be looking to display strength as it nears its next earnings release. On that day, GRUB is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $323.21 million, up 38.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.45 per share and revenue of $1.37 billion. These totals would mark changes of -12.65% and +35.94%, respectively, from last year.
Any recent changes to analyst estimates for GRUB should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GRUB is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, GRUB is currently trading at a Forward P/E ratio of 51.06. Its industry sports an average Forward P/E of 15.75, so we one might conclude that GRUB is trading at a premium comparatively.
Also, we should mention that GRUB has a PEG ratio of 2.33. 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. Internet – Delivery Services stocks are, on average, holding a PEG ratio of 1.58 based on yesterday’s closing prices.
The Internet – Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.