Earnings Estimates Rising for ZipRecruiter, Inc. (ZIP): Will It Gain?

ZipRecruiter, Inc. (ZIP) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in estimate revisions and near-term stock price movements. Our stock rating tool — the Zacks Rank — is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressively externally-audited track record of outperformance, with Zacks #1 ranked stocks generating an average annual return of +25% since 2008.

For ZipRecruiter, Inc. There has been strong agreement among the covering analysts in raising estimates, which has helped push consensus estimates increase higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month

Current-Quarter Estimate Revisions

The company is expected to earn $0.06 per share for the current quarter, which represents a year-over-year change of +110.91%.

The Zacks Consensus Estimate for ZipRecruiter, Inc. has increased 38.46% over the last 30 days, as two estimates have gone higher while one has gone lower.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $0.25 per share, representing a year-over-year change of +1150%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for ZipRecruiter, Inc. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 78.57%.

Favorable Zacks Rank

The promising estimate revisions have helped ZipRecruiter, Inc. earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimates and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for ZipRecruiter, Inc. have attracted decent investments and pushed the stock 5.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.

Zacks’ Top Picks to Cash in on Electric Vehicles

Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investors

See 5 EV Stocks With Extreme Upside Potential >>

Click to get this free report

ZipRecruiter, Inc. (ZIP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Leave a Comment