DouYu International Holdings Limited Sponsored ADR (DOYU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, DouYu International Holdings Limited Sponsored ADR (DOYU) closed at $12.02, marking a -0.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, added 0.28%.
Heading into today, shares of the company had gained 11.16% over the past month, outpacing the Consumer Discretionary sector's gain of 4.56% and the S&P 500's gain of 2.96% in that time.
DOYU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.12, up 300% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $325.44 million, up 19.3% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.51 per share and revenue of $1.38 billion. These totals would mark changes of +200% and +32.44%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DOYU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 has moved 7.09% higher within the past month. DOYU is currently a Zacks Rank #2 (Buy).
Looking at its valuation, DOYU is holding a Forward P/E ratio of 23.63. Its industry sports an average Forward P/E of 23.63, so we one might conclude that DOYU is trading at a no noticeable deviation comparatively.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.