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Yelp (YELP) Reports Next Week: Wall Street Expects Earnings Growth
ZACKS· 2025-02-06 16:06
Core Viewpoint - Yelp is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with a consensus outlook suggesting a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Financial Expectations - The consensus EPS estimate for Yelp is $0.51 per share, reflecting a year-over-year increase of +37.8%, while revenues are projected to be $350.73 million, up 2.4% from the previous year [3]. - The Most Accurate Estimate for Yelp is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +12.87%, indicating a bullish sentiment among analysts regarding the company's earnings prospects [10][11]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 5.44%, indicating a reassessment by covering analysts [4]. - The direction of estimate revisions may not always reflect in the aggregate change, suggesting variability in analyst sentiment [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Yelp currently holds a Zacks Rank of 3, which, combined with the positive Earnings ESP, indicates a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Yelp exceeded the expected earnings of $0.40 per share by delivering $0.56, resulting in a surprise of +40% [12]. - Over the past four quarters, Yelp has beaten consensus EPS estimates three times, showcasing a pattern of positive earnings surprises [13]. Conclusion - While an earnings beat or miss can influence stock movement, other factors may also play a significant role in investor sentiment and stock performance [14]. - Betting on stocks expected to beat earnings expectations can enhance the odds of success, making it important to consider Earnings ESP and Zacks Rank before quarterly releases [15].
Why Yelp (YELP) Could Beat Earnings Estimates Again
ZACKS· 2025-01-21 18:15
Core Viewpoint - Yelp (YELP) is positioned well to continue its trend of beating earnings estimates, with a strong history of performance in recent quarters [1][3]. Earnings Performance - In the most recent quarter, Yelp reported earnings of $0.56 per share, exceeding the expected $0.40 per share by 40% [2]. - For the previous quarter, Yelp's earnings were $0.54 per share against an expectation of $0.23 per share, resulting in a surprise of 134.78% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Yelp, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [3][6]. - Yelp currently has an Earnings ESP of +12.87%, suggesting analysts have recently become more optimistic about the company's earnings prospects [6]. Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5].
Here's Why YELP is a Must-Buy Stock Despite 12% Dip in a Year
ZACKS· 2025-01-09 16:30
Yelp's Stock Performance and Challenges - Yelp's shares have plunged 12% over the past year, underperforming compared to the Zacks Computer and Technology sector's 33.5% return and the Zacks Internet – Content industry's 13.8% appreciation [1] - The underperformance is attributed to softness in the restaurant and retail business segments and rising competition [1] - Yelp has also underperformed its industry peers, RELX Plc and Opera Limited, whose shares have soared 16.2% and 47.9%, respectively, over the past year [2] Yelp's Strengths and Business Model - Yelp's high-margin, capital-light business model remains a key strength [3] - The company's strong brand recognition helps it stay competitive in a market where platforms like Instagram and TikTok are vying for user engagement [3] - Unlike social media platforms, Yelp's targeted ad products and tailored user experiences provide measurable returns on investment for advertisers [3] Yelp's Strategic Focus and Product Innovation - Yelp's latest product launches prioritize full-funnel advertising solutions, aiming to boost awareness and conversions for advertisers [4] - The company is focusing on the high-growth home services segment, which strengthens its long-term revenue outlook [4] - Yelp's end-of-year product release in January 2025 includes over 20 new features aimed at improving the user experience, such as AI-powered Review Insights, a personalized home feed, and enhancements to Yelp Assistant [5] - AI-powered enhancements for business owners include a smart selection tool that optimizes ad performance and job summaries to manage inboxes [6] User Engagement and Analyst Optimism - Yelp's initiatives to improve user engagement through innovative product development could reverse the downward trend in monthly active users [7] - Analysts are optimistic about Yelp's near-term prospects, with the Zacks Consensus Estimate for 2025 revenues and EPS showing year-over-year increases of 5.1% and 28.3%, respectively [8] - Yelp has surpassed the Zacks Consensus Estimate thrice in the trailing four quarters, with an average surprise of 143.7% [8]
Yelp Gains 13% in Three Months: How Should Investors Play the Stock?
ZACKS· 2024-12-27 16:36
Yelp Inc.’s (YELP) shares have gained 13.1% in the past three-month period, outperforming the Zacks Computer Technology sector and the S&P 500’s return of 9.5% and 5.6%, respectively. The company has also outperformed the Zacks Internet Content industry, which has declined 2.2% in the past three months. This outperformance reflects investors’ confidence in Yelp’s strong position in the business reviews and ratings market and allied advertising services.Advertising Services Aid Yelp’s ToplineYelp earns a maj ...
Yelp: Terrific Value Investment For 2025, Even Amid A Tough Restaurant Environment
Seeking Alpha· 2024-12-18 10:01
Most of the internet sector has soared this year amid a record-shattering S&P 500. Yelp (NYSE: YELP ), however, has been a major exception. The reviews site has been under pressure from a pullback in the restaurant space. AsWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on See ...
Yelp Adds New Features to Its Platform: What Should Investors Do?
ZACKS· 2024-12-11 15:55
Yelp Inc. (YELP) shares have gained 19.7% in the past three months, outperforming the Zacks Computer Technology sector, Zacks Internet Content industry, the S&P 500 and  Technology Select Sector SPDR Fund’s (XLK) return of 10.5%, 5%, 8.5% and 7.5%, respectively. This shows investors’ confidence in Yelp’s robust product positioning and strong financial performance.Yelp recently added several features to its platform. These features include AI-powered review insights, personalized home feed, expanded recognit ...
Yelp: Proven Advertiser At Compelling Price
Seeking Alpha· 2024-12-11 07:16
As the US markets continue to rise to all-time highs, it becomes increasingly difficult to find investment opportunities. Throughout the past 5 years, I've made a handful of successful investments in companies with 4 shared characteristics:I'm an individual investor looking to build a long track record of compounded returns. I have a director level job in Accounting/Finance and invest because I passionately enjoy researching companies. I've been investing for 5 years, although the first two years were about ...
Here's Why Yelp (YELP) is a Strong Value Stock
ZACKS· 2024-12-02 20:26
Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and enhance their investment strategies, including daily updates, research reports, and stock screening tools [1][2]. Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, assisting investors in selecting stocks with the potential to outperform the market in the short term [3][4]. - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4]. Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Cash Flow [5]. - **Growth Score**: Evaluates a company's financial health and future growth potential based on earnings and sales projections [6]. - **Momentum Score**: Assesses trends in stock price and earnings estimates to identify optimal buying opportunities [7]. - **VGM Score**: A composite score that combines Value, Growth, and Momentum Scores, providing a comprehensive assessment of a stock's attractiveness [8]. Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building [9]. - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10]. - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [12]. Stock Highlight: Yelp (YELP) - Yelp, founded in 2004, operates as an online community providing information on various services [15]. - Yelp holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [16]. - The company has a forward P/E ratio of 21.19, making it attractive to value investors, and has seen upward revisions in earnings estimates, with a consensus estimate of $1.80 per share for fiscal 2024 [16].
Yelp (YELP) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2024-12-02 18:46
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help ...
Why Yelp (YELP) is a Top Value Stock for the Long-Term
ZACKS· 2024-11-13 15:45
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? The ...