NetEase (NASDAQ:NTES) closed at $328 in the latest trading session, marking a -1.6% move from the prior day. This change lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.26%.
Prior to today's trading, shares of the internet technology company had gained 8.71% over the past month. This has outpaced the Computer and Technology sector's gain of 4.64% and the S&P 500's gain of 1.18% in that time.
Investors will be hoping for strength from NTES as it approaches its next earnings release. The company is expected to report EPS of $3.02, up 13.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, down 25.31% from the year-ago period.
Investors might also notice recent changes to analyst estimates for NTES. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NTES is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, NTES is holding a Forward P/E ratio of 21.52. Its industry sports an average Forward P/E of 22.65, so we one might conclude that NTES is trading at a discount comparatively.
Investors should also note that NTES has a PEG ratio of 0.51 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 Internet - Software and Services was holding an average PEG ratio of 5.59 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 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NTES in the coming trading sessions, be sure to utilize Zacks.com.
NetEase, Inc. (NTES): Free Stock Analysis Report
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