Yahoo Finance NetEase (NTES) Gains But Lags Market: What You Should Know
NetEase (NTES) closed at $306.91 in the latest trading session, marking a +1.85% move from the prior day. This change lagged the S&P 500's 3.35% gain on the day. At the same time, the Dow added 3.19%, and the tech-heavy Nasdaq gained 3.62%.
Prior to today's trading, shares of the internet technology company had lost 6.39% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.32% and the S&P 500's loss of 14.37% in that time.
Wall Street will be looking for positivity from NTES as it approaches its next earnings report date. The company is expected to report EPS of $3.57, up 29.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.31 billion, down 15.68% from the year-ago period.
NTES's full-year Zacks Consensus Estimates are calling for earnings of $15.79 per share and revenue of $9.75 billion. These results would represent year-over-year changes of +7.63% and -0.23%, respectively.
Any recent changes to analyst estimates for NTES 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.23% higher within the past month. NTES is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note NTES's current valuation metrics, including its Forward P/E ratio of 19.08. This represents a discount compared to its industry's average Forward P/E of 28.21.
We can also see that NTES currently has a PEG ratio of 0.45. 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. The Internet - Software and Services was holding an average PEG ratio of 6.17 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% 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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