Knuckling Down on Shares of Yelp Inc. (NYSE:YELP)

Bargain stock hunters have honed in their attention of late on shares of Yelp Inc. (NYSE:YELP).  The stock is currently valued at $35.59 after moving 0.03% in the most recent session and 0.25% over the past 5 trading days.  Given that the stock is priced cheaply, let’s take a look and see if there is any value here.

Investors are typically looking for any little advantage when it comes to the equity markets. Investors often have to figure out not only how certain companies are faring, but also how the overall global economic landscape is shaping up. Focusing in on the proper economic data can help detect overall trends in the economy. Investors who are able to hone their analytical skills might be able to put themselves in a much better position to achieve success. Being able to process and organize all of the different types of financial information that is constantly being thrown around may be a great asset to the individual trader and investor. The amount of information floating around in today’s investing climate is enormous. Zooming in on the most pertinent information can help keep things manageable.

After a recent check, shares of Yelp Inc. (NYSE:YELP) have been seen trading -12.73% off of the 50-day high and 4.52% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are 1.42% away from the 20-day moving average and -1.90% off of the 50-day average. If we take a wider approach, shares have been trading -9.13% away from the 200-day moving average.

Over the last year, Yelp Inc. (NYSE:YELP)’s stock has performed -19.42%. For the last six months, the stock has performed -16.81%. From the start of the calendar year, shares have been 1.71%. Zooming in closer, company stock has been 1.77% for the quarter, 2.04% over the past month, and 0.25% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. Yelp Inc. (NYSE:YELP) current has a Beta score of 0.89.

FUNDAMENTAL ANALYSIS

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Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Yelp Inc.’s EPS is 0.63.  Their EPS should be compared to other companies in the Technology sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Yelp Inc.’s  P/E ratio is 56.58. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Yelp Inc.’s  PEG is 1.70.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 5.00%.  Calculated by dividing Yelp Inc.’s annual earnings by its total assets, investors will note a return on assets of 4.60%.  Finally, Yelp Inc.’s return on investment stands at 3.80% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 2.80 for Yelp Inc. (NYSE:YELP).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.