Weibo Corporation (WB) closed the most recent trading day at $64.28, moving -1.91% from the previous trading session. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 1.75%, while the tech-heavy Nasdaq added 0.61%.
Prior to today's trading, shares of the company had gained 12.54% over the past month. This has outpaced the Computer and Technology sector's gain of 8.93% and the S&P 500's gain of 6.53% in that time.
WB will be looking to display strength as it nears its next earnings release. On that day, WB is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 21.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $481.53 million, up 27.57% from the year-ago period.
It is also important to note the recent changes to analyst estimates for WB. 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.
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 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 4.21% lower. WB is currently a Zacks Rank #4 (Sell).
Digging into valuation, WB currently has a Forward P/E ratio of 20.67. Its industry sports an average Forward P/E of 21.83, so we one might conclude that WB is trading at a discount comparatively.
Meanwhile, WB's PEG ratio is currently 1.12. 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. WB's industry had an average PEG ratio of 1.2 as of yesterday's close.
The Internet - Content industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
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