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MoneyLion Inc. (ML) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of MoneyLion Inc. (ML - Free Report) ? Shares have been on the move with the stock up 32.3% over the past month. The stock hit a new 52-week high of $97.47 in the previous session. MoneyLion Inc. has gained 49.7% since the start of the year compared to the 6.1% move for the Zacks Business Services sector and the 4.2% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2024, MoneyLion reported EPS of $0.6 versus consensus estimate of $-0.29 while it missed the consensus revenue estimate by 0.47%.
For the current fiscal year, MoneyLion is expected to post earnings of $1.45 per share on $524.8 million in revenues. This represents a 131.32% change in EPS on a 23.94% change in revenues. For the next fiscal year, the company is expected to earn $5.51 per share on $636.7 million in revenues. This represents a year-over-year change of 280% and 21.32%, respectively.
Valuation Metrics
MoneyLion may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
MoneyLion has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 64.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.9X. On a trailing cash flow basis, the stock currently trades at 140.2X versus its peer group's average of 9.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, MoneyLion currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if MoneyLion fits the bill. Thus, it seems as though MoneyLion shares could have a bit more room to run in the near term.
How Does ML Stack Up to the Competition?
Shares of ML have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Paysafe Limited (PSFE - Free Report) . PSFE has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Paysafe Limited beat our consensus estimate by 67.65%, and for the current fiscal year, PSFE is expected to post earnings of $2.47 per share on revenue of $1.7 billion.
Shares of Paysafe Limited have gained 27.9% over the past month, and currently trade at a forward P/E of 7.51X and a P/CF of 2.92X.
The Financial Transaction Services industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ML and PSFE, even beyond their own solid fundamental situation.
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MoneyLion Inc. (ML) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of MoneyLion Inc. (ML - Free Report) ? Shares have been on the move with the stock up 32.3% over the past month. The stock hit a new 52-week high of $97.47 in the previous session. MoneyLion Inc. has gained 49.7% since the start of the year compared to the 6.1% move for the Zacks Business Services sector and the 4.2% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2024, MoneyLion reported EPS of $0.6 versus consensus estimate of $-0.29 while it missed the consensus revenue estimate by 0.47%.
For the current fiscal year, MoneyLion is expected to post earnings of $1.45 per share on $524.8 million in revenues. This represents a 131.32% change in EPS on a 23.94% change in revenues. For the next fiscal year, the company is expected to earn $5.51 per share on $636.7 million in revenues. This represents a year-over-year change of 280% and 21.32%, respectively.
Valuation Metrics
MoneyLion may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
MoneyLion has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 64.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.9X. On a trailing cash flow basis, the stock currently trades at 140.2X versus its peer group's average of 9.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, MoneyLion currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if MoneyLion fits the bill. Thus, it seems as though MoneyLion shares could have a bit more room to run in the near term.
How Does ML Stack Up to the Competition?
Shares of ML have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Paysafe Limited (PSFE - Free Report) . PSFE has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Paysafe Limited beat our consensus estimate by 67.65%, and for the current fiscal year, PSFE is expected to post earnings of $2.47 per share on revenue of $1.7 billion.
Shares of Paysafe Limited have gained 27.9% over the past month, and currently trade at a forward P/E of 7.51X and a P/CF of 2.92X.
The Financial Transaction Services industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ML and PSFE, even beyond their own solid fundamental situation.