Meet Group (MEET) closed at $3.48 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500’s 0.97% gain on the day. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq added 1.39%.
Prior to today’s trading, shares of the dating site company had lost 17.18% over the past month. This has lagged the Computer and Technology sector’s loss of 1.04% and the S&P 500’s gain of 0.64% in that time.
MEET will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.11, up 37.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $50.65 million, up 18.34% from the prior-year quarter.
MEET’s full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $212.15 million. These results would represent year-over-year changes of +27.78% and +18.78%, respectively.
Investors might also notice recent changes to analyst estimates for MEET. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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.
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. MEET is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note MEET’s current valuation metrics, including its Forward P/E ratio of 7.6. Its industry sports an average Forward P/E of 63.5, so we one might conclude that MEET is trading at a discount comparatively.
We can also see that MEET currently has a PEG ratio of 0.38. 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 – Software industry currently had an average PEG ratio of 2.55 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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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