Glu Mobile (GLUU) Outpaces Stock Market Gains: What You Should Know
Glu Mobile (GLUU) closed the most recent trading day at $11.54, moving +0.79% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.46%.
Prior to today's trading, shares of the mobile game maker had gained 14.73% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.95% and the S&P 500's gain of 3.97% in that time.
Investors will be hoping for strength from GLUU as it approaches its next earnings release. In that report, analysts expect GLUU to post earnings of $0.05 per share. This would mark year-over-year growth of 66.67%. Meanwhile, our latest consensus estimate is calling for revenue of $90.16 million, up 4.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.33 per share and revenue of $445.58 million. These totals would mark changes of +230% and +15.86%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GLUU. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GLUU is currently a Zacks Rank #3 (Hold).
Investors should also note GLUU's current valuation metrics, including its Forward P/E ratio of 35.23. Its industry sports an average Forward P/E of 22.06, so we one might conclude that GLUU is trading at a premium comparatively.
Investors should also note that GLUU has a PEG ratio of 2.35 right now. 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. The Toys - Games - Hobbies was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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.