Significant upside for Yelp ahead of the earnings

5:41 am ET, 07 Nov 2018

Yelp Inc. (YELP) shares are trading at 44.53, up 2.44%. The company is announcing its quarterly earnings results on Thursday after the market close. What's driving Yelp stock price? What's YELP stock price forecast?

Yelp operates a platform that connects consumers with local businesses. Lately, the stock has performed well: it generated an 11% return in the past three months. The company has shifted its focus to non-term advertising, which means that customers won't have to sign a long-term contract to do business with Yelp.  This will help the company grow its customer base.

Investors are showing interest in the company as it is well positioned to grow its ad revenue. On the other hand, few bearish investors worry about the rising completion in the advertising segment. Last quarter’s revenue rose 13% to $235 million and earnings per share came at 12 cents compared to 9 cents for the same period last year.

Third-quarter results will be released after market close on November 08, 2018.  Analysts expect the company to earn 10 cents per share on revenue of $245.35 million. The company beats analysts' estimates in the previous four quarters.

What is the sentiment towards the YELP stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Yelp Inc. (YELP) returned -16.8%. 

Yelp Inc. (YELP) forward P/E ratio is 71.3, and it’s high compared to its industry peers’ P/E ratios.

Yelp Inc. (YELP) short share of float is 9.19%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Yelp Inc. (YELP) average analyst price target ($50.73) is 23.16% above its current price ($41.19).

For the latest price and information on Yelp Inc., please visit Finstead and search for "YELP price" or "YELP news".

Yelp Inc. (YELP) Stock Guide

Updated at: 9:07 pm ET, 18 Sep 2020

Before we start: if you're looking for YELP stock price, you can quickly find it out by visiting Finny and typing "YELP quote". If you're looking for a quick scoop on YELP stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "YELP". You'll get all this info in one place. Or you can just type "YELP news" to get the latest stock news.

Looking to buy or sell Yelp Inc. (YELP)? Interested in getting the full scoop on YELP, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this YELP stock guide, we'll address key questions about YELP, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are YELP earnings?
2. What is YELP stock forecast (i.e., prediction)?
3. YELP buy or sell? What is YELP Finny Score?
4. What are the reasons to buy YELP? Why should I buy YELP stock?
5. What are the reasons to sell YELP? Why should I sell YELP stock?
6. What are YELP key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are YELP earnings?

YELP trailing 12-month earnings per share (EPS) is -$0.18.

Analyst Predictions

2. What is YELP stock forecast (i.e., prediction)?

Based on YELP analyst price targets, YELP stock forecast is $25.41 (for a year from now). That means the average analyst price target for YELP stock is $25.41. The prediction is based on 33 analyst estimates.

The low price target for YELP is $20.00, while the high price target is $34.00.

YELP analyst rating is Buy.

Analysis

3. YELP buy or sell? What is YELP Finny Score?

#{finnyScore:67}Our quantitative analysis shows 6 reasons to buy and 3 reasons to sell YELP, resulting in Finny Score of 67.

4. What are the reasons to buy YELP? Why should I buy YELP stock?

Here are the reasons to buy YELP stock:

  • YELP profitability is improving. The YoY profit margin change was 18.71 percentage points. See YELP profitability chart.
  • YELP PEG ratio (P/E adjusted for growth) is 4.34, which is low compared to its industry peers’ PEG ratios. See YELP PEG chart.
  • YELP average analyst rating is Buy. See YELP analyst rating chart.
  • YELP average analyst price target ($25.41) is above its current price ($20.53). See YELP price target chart.
  • YELP cash to debt ratio is 2.38, higher than the average industry (0.17) and sector (0.17) cash to debt ratio. See YELP cash to debt chart.
  • YELP Enterprise Value/Revenue multiple is 1.42, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See YELP Enterprise Value/Revenue chart.

5. What are the reasons to sell YELP? Why should I sell YELP stock?

Let's look at the reasons to sell YELP stock (i.e., the bear case):

  • YELP quarterly revenue growth was -31.60%, lower than the industry and sector average revenue growth (1.28% and 0.89%, respectively). See YELP revenue growth chart.
  • YELP short share of float is 20.71%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See YELP short share of float chart.
  • YELP short interest (days to cover the shorts) ratio is 10.34. The stock garners more short interest than the average industry, sector or S&P 500 stock. See YELP short interest ratio chart.

Key Stats

6. What are YELP key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for YELP:

Metrics YELP
Price $19.61
Average Price Target / Upside $25.41 / 29.58%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Internet Content & Information
Sector Technology
Number of Employees 6,030
Market Cap $1.65B
Forward P/E Ratio -141.38
Price/Book Ratio 1.74
Revenue (TTM) $950.23M
YoY Quarterly Revenue Growth -31.60%
Profit Margin -1.29%

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