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Meet Group (MEET) Stock Sinks As Market Gains: What You Should Know

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Meet Group closed the most recent trading day at $3.42, moving -0.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.58%.

Heading into today, shares of the dating site company had gained 4.23% over the past month, outpacing the Computer and Technology sector's gain of 2.27% and the S&P 500's gain of 1.36% in that time.

Investors will be hoping for strength from MEET as it approaches its next earnings release, which is expected to be July 31, 2019. On that day, MEET is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $50.67 million, up 18.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.46 per share and revenue of $212.23 million, which would represent changes of +27.78% and +18.82%, respectively, from the prior year.

Any recent changes to analyst estimates for MEET should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MEET is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that MEET has a Forward P/E ratio of 7.46 right now. For comparison, its industry has an average Forward P/E of 64.69, which means MEET is trading at a discount to the group.

We can also see that MEET currently has a PEG ratio of 0.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.5 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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