Yahoo Finance Earnings are growing at ZipRecruiter (NYSE:ZIP) but shareholders still don't like its prospects
It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. For example, the ZipRecruiter, Inc. (NYSE:ZIP) share price is down 39% in the last year. That falls noticeably short of the market decline of around 14%. ZipRecruiter may have better days ahead, of course; we've only looked at a one year period.
With the stock having lost 3.6% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.
Check out our latest analysis for ZipRecruiter
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During the unfortunate twelve months during which the ZipRecruiter share price fell, it actually saw its earnings per share (EPS) improve by 141%. Of course, the situation might betray previous over-optimism about growth.
It's surprising to see the share price fall so much, despite the improved EPS. So it's easy to justify a look at some other metrics.
ZipRecruiter managed to grow revenue over the last year, which is usually a real positive. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We know that ZipRecruiter has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think ZipRecruiter will earn in the future (free profit forecasts).
A Different Perspective
We doubt ZipRecruiter shareholders are happy with the loss of 39% over twelve months. That falls short of the market, which lost 14%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 0.2%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. Is ZipRecruiter cheap compared to other companies? These 3 valuation measures might help you decide.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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