For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has MoneyLion Inc. (ML) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.MoneyLion Inc. is one of 315 individual stocks in the Business Services sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector ...

Core Insights - MoneyLion Inc. has seen a significant stock performance increase of +48.5% over the past month, outperforming the Zacks S&P 500 composite which increased by +4.3% [1] - The Zacks Financial Transaction Services industry, to which MoneyLion belongs, has experienced a decline of -2.6% during the same period [1] Earnings Estimates Revisions - MoneyLion is projected to report a loss of $0.01 per share for the current quarter, reflecting a year-over-year improvement of +97.6% [2] - The Zacks Consensus Estimate for the current quarter has increased by +96% over the last 30 days [2] Fiscal Year Earnings Estimates - For the current fiscal year, the consensus earnings estimate is $1.45, indicating a year-over-year change of +131.3% [3] - The estimate for the next fiscal year is $5.51, representing a change of +280% compared to the previous year, with a recent increase of +55.2% over the past month [3] Revenue Growth Potential - The consensus sales estimate for the current quarter is $127.4 million, showing a year-over-year increase of +19.6% [6] - For the current and next fiscal years, the sales estimates are $524.8 million and $636.7 million, indicating changes of +23.9% and +21.3%, respectively [6] Last Reported Results - In the last reported quarter, MoneyLion achieved revenues of $121.01 million, a year-over-year increase of +29.2% [7] - The EPS for the same period was $0.60, compared to -$1.29 a year ago, with a revenue surprise of +3.25% and an EPS surprise of +306.9% [7] Valuation Metrics - MoneyLion's valuation is assessed using multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) to determine if the stock is fairly valued [8] - The Zacks Value Style Score grades MoneyLion as C, indicating it is trading at par with its peers [10] Conclusion - The Zacks Rank 1 for MoneyLion suggests a potential for outperforming the broader market in the near term [11]

Core Viewpoint - The Russell 2000 Small-Cap Index has underperformed compared to the broader market, but there are expectations for a potential convergence in performance due to upcoming interest rate cuts and seasonal factors [1][2]. Small-Cap Stocks Catalysts - Elevated interest rates have negatively impacted small-cap stocks, but anticipated interest rate cuts before year-end could provide a boost [2]. - Seasonal trends indicate that from mid-May to the end of June, the Russell 2000 typically outperforms the S&P 500 [2]. - Notable hedge fund manager Stanley Druckenmiller has increased his position in small-cap stocks, indicating confidence in this sector [2][16]. Company Highlights MoneyLion (ML) - MoneyLion is a financial technology company that offers a range of financial products through its mobile app, including banking, lending, and investment services [4]. - The company reported record revenue of $121 million, a 29% year-over-year increase, and expanded margins by 480 basis points, with total customers growing to 15.5 million, a 98% increase year-over-year [4][5]. - Analysts have raised earnings estimates significantly, with a 2,500% increase in this year's earnings estimate over the last month, and the stock is trading at 18 times FY25 earnings [5][7]. PubMatic (PUBM) - PubMatic is a digital advertising technology company that provides a cloud-based platform for publishers to optimize ad revenue through programmatic advertising [8]. - The company has seen strong sales growth in the teens and profit growth driven by improving business fundamentals [8]. - Analysts have upgraded FY24 earnings estimates by 41% and FY25 estimates by 34%, giving it a Zacks Rank 1 (Strong Buy) rating [9]. Universal Technical Institute (UTI) - UTI is a provider of post-secondary education focused on technical training for various industries, operating campuses across the US [11][12]. - The company has seen steady increases in earnings estimates and holds a Zacks Rank 2 (Buy) rating, with expectations to beat next quarter's earnings estimates by 13.8% [12]. - UTI's stock is up 25% year-to-date and is trading at a forward earnings multiple of 21.5 times, below its 10-year median of 29.2 times [11][13].

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about MoneyLion Inc. (ML) .MoneyLion currently has an average brokerage recommendation (ABR) of 1.20, ...

Company Performance - MoneyLion Inc. shares have increased by 32.3% over the past month and reached a new 52-week high of $97.47 [1] - The stock has gained 49.7% since the beginning of the year, outperforming the Zacks Business Services sector (6.1%) and the Zacks Financial Transaction Services industry (4.2%) [1] Earnings and Revenue Expectations - MoneyLion reported an EPS of $0.6 in its last earnings report, significantly exceeding the consensus estimate of -$0.29, although it missed the revenue estimate by 0.47% [2] - For the current fiscal year, the company is expected to post earnings of $1.45 per share on revenues of $524.8 million, reflecting a 131.32% increase in EPS and a 23.94% increase in revenues [2] - For the next fiscal year, earnings are projected to be $5.51 per share on revenues of $636.7 million, indicating a year-over-year change of 280% in EPS and 21.32% in revenues [2] Valuation Metrics - MoneyLion's stock trades at 64.7X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 14.9X [4] - On a trailing cash flow basis, the stock trades at 140.2X versus the peer group's average of 9.6X, suggesting it is not positioned in the top echelon from a value perspective [4] Zacks Rank and Style Scores - MoneyLion holds a Zacks Rank of 1 (Strong Buy) due to favorable earnings estimate revisions from analysts [5] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of B, resulting in a combined VGM Score of A [3][5] Industry Comparison - The Financial Transaction Services industry is performing well, ranking in the top 17% of all industries, providing a favorable environment for both MoneyLion and its peer, Paysafe Limited [6] - Paysafe Limited has a Zacks Rank of 2 (Buy) and is expected to post earnings of $2.47 per share on revenues of $1.7 billion for the current fiscal year [6]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - MoneyLion Inc. (ML) shows potential for significant upside, with a mean price target of $104.40 indicating a 27.4% increase from its current price of $81.95, despite some analysts predicting a decline [1] Group 1: Price Targets and Analyst Consensus - The mean price target for ML is $104.40, with a standard deviation of $19.19, indicating variability in analyst estimates [1] - The lowest estimate is $80, suggesting a 2.4% decline, while the highest estimate predicts a 62.3% increase to $133 [1] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price movement [4] Group 2: Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about ML's earnings prospects, with a significant upward revision in EPS estimates, increasing by 2516.7% over the past month [5] - The Zacks Consensus Estimate indicates that ML has a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [5] - The correlation between earnings estimate revisions and near-term stock price movements supports the expectation of an upside for ML [5] Group 3: Analyst Behavior and Price Target Reliability - Analysts often set overly optimistic price targets due to business incentives, which can mislead investors [3] - Despite the consensus price target being a popular tool among investors, it is often not a reliable indicator of actual stock price movements [2][3] - A tight clustering of price targets can serve as a starting point for further research into the stock's fundamental drivers [4]

Investors might want to bet on MoneyLion Inc. (ML) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changi ...

Financial Data and Key Metrics Changes - MoneyLion achieved record quarterly revenue of $121 million, representing a 29% year-over-year growth, up from 19% in Q4 2023 [7][24] - Adjusted EBITDA reached $23 million for the quarter, reflecting a 19.4% adjusted EBITDA margin, up from 14.6% in Q4 2023, indicating approximately 480 basis points of margin expansion [8][25] - GAAP net income was $7 million with diluted earnings per share of $0.60, marking a significant profitability milestone [8][25] Business Line Data and Key Metrics Changes - Total customers increased to 15.5 million, reflecting a 98% year-over-year growth, with strong conversions on the consumer side offsetting lower conversions on the enterprise side [8][24] - Total products consumed on the platform reached 25.3 million, compared to 14.7 million in the prior-year quarter, with 49% of products consumed being third-party [9][10] Market Data and Key Metrics Changes - The enterprise business saw a quarter-over-quarter growth in marketplace revenue, with personal loans comprising around 55% of total marketplace revenues, down from over 80% historically [46] - The company reported approximately 80 million total customer inquiries in Q1 2024, up over 130% from roughly 34 million in Q1 2023 [18][19] Company Strategy and Development Direction - MoneyLion is focused on a marketplace-first strategy, enhancing its product offerings and deepening relationships with both consumers and enterprise partners [11][12] - The company aims to expand into new verticals such as credit cards, auto insurance, and mortgages, while optimizing its customer acquisition funnel [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in the underwriting environment for personal loans and expressed optimism about future growth opportunities across various product verticals [16][46] - The company expects revenue for Q2 2024 to be between $125 million to $130 million, representing 17% to 22% year-over-year growth [26] Other Important Information - MoneyLion's cash position increased to $93 million, up from $92 million in Q4 2023, indicating strong cash generation capabilities [25] - The company is transitioning to a forward flow financing arrangement, which will improve cash efficiency and lighten the balance sheet [23][42] Q&A Session Summary Question: Insights on Q1 performance and AI initiatives - Management highlighted strong consumer business performance in Q1 and discussed ongoing AI initiatives aimed at personalizing consumer experiences and enhancing monetization strategies [32][33][36] Question: Update on EY partnership and WOW offering - The EY partnership is progressing well, with expectations for growth contributions starting in late Q4 2024. The WOW offering is being refined for market launch, aimed at increasing product adoption and recurring revenue [37][39] Question: Impact of forward flow arrangement on balance sheet - The forward flow arrangement will allow for real-time sales of receivables, increasing cash on hand and eliminating provisions for those receivables [42][43] Question: Trends in the enterprise segment - Management noted mixed trends in the enterprise segment, with personal loans facing macroeconomic headwinds but opportunities for growth in new verticals [45][46] Question: Future profitability expectations - Management confirmed that the GAAP profitability achieved in Q1 is expected to continue, driven by operational leverage and effective cost management [50][51] Question: Clarification on EBITDA margin guidance - Management clarified that the Q2 EBITDA margin guidance reflects seasonal factors and remains consistent with long-term targets, indicating confidence in maintaining strong margins [59][60]

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