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Gaiam (GAIA) Gains But Lags Market: What You Should Know

Zacks Equity Research

Gaiam (GAIA) closed the most recent trading day at $8.56, moving +1.9% from the previous trading session. The stock lagged the S&P 500's daily gain of 3.41%. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.

Prior to today's trading, shares of the lifestyle media company had gained 26.89% over the past month. This has outpaced the Consumer Discretionary sector's loss of 14.3% and the S&P 500's loss of 10.46% in that time.

Investors will be hoping for strength from GAIA as it approaches its next earnings release. On that day, GAIA is projected to report earnings of -$0.16 per share, which would represent year-over-year growth of 55.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.06 million, up 20.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.40 per share and revenue of $66.06 million. These totals would mark changes of +59.6% and +22.38%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for GAIA. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. GAIA is holding a Zacks Rank of #1 (Strong Buy) right now.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 44% 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.

To follow GAIA in the coming trading sessions, be sure to utilize Zacks.com.


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