Weibo Corporation (WB) closed the most recent trading day at $61.03, moving +1.6% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the company had gained 0.81% over the past month. This has lagged the Computer and Technology sector's gain of 7.83% and the S&P 500's gain of 6.28% in that time.
Investors will be hoping for strength from WB as it approaches its nex t earnings release. The company is expected to report EPS of $0.79, up 23.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $483.67 million, up 28.14% from the year-ago period.
Investors should also note any recent changes to analyst estimates for WB. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.21% lower. WB currently has a Zacks Rank of #4 (Sell).
Investors should also note WB's current valuation metrics, including its Forward P/E ratio of 18.6. For comparison, its industry has an average Forward P/E of 20.06, which means WB is trading at a discount to the group.
We can also see that WB currently has a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Content stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.
The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.