YY (YY) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, YY (YY) closed at $69.69, marking a +0.94% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.48%.

Prior to today's trading, shares of the social media company had lost 1.71% over the past month. This has lagged the Computer and Technology sector's gain of 3.51% and the S&P 500's gain of 3.62% in that time.

YY will be looking to display strength as it nears its next earnings release. On that day, YY is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 18.72%. Our most recent consensus estimate is calling for quarterly revenue of $881.45 million, up 54.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.72 per share and revenue of $3.22 billion. These totals would mark changes of -5.75% and +36.35%, respectively, from last year.

Any recent changes to analyst estimates for YY should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. YY currently has a Zacks Rank of #3 (Hold).

Digging into valuation, YY currently has a Forward P/E ratio of 10.27. Its industry sports an average Forward P/E of 26.25, so we one might conclude that YY is trading at a discount comparatively.

It is also worth noting that YY currently has a PEG ratio of 0.72. 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. YY's industry had an average PEG ratio of 0.91 as of yesterday's close.

The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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