ZipRecruiter, Inc. (NYSE:ZIP), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's take a look at ZipRecruiter's outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for ZipRecruiter
What Is ZipRecruiter Worth?
The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that ZipRecruiter's ratio of 21.85x is trading in-line with its industry peers' ratio, which means if you buy ZipRecruiter today, you'd be paying a relatively reasonable price for it. Is there another opportunity to buy low in the future? Since ZipRecruiter's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of ZipRecruiter look like?
NYSE:ZIP Earnings and Revenue Growth January 2nd 2024
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Though in the case of ZipRecruiter, it is expected to deliver a highly negative earnings growth in the next few years, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? ZIP seems priced close to industry peers right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on ZIP, take a look at whether its fundamentals have changed.
Are you a potential investor? If you've been keeping an eye on ZIP for a while, now may not be the most optimal time to buy, given it is trading around industry price multiples. This means there's less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven't considered today, which can help gel your views on ZIP should the price fluctuate below the industry PE ratio.
If you want to dive deeper into ZipRecruiter, you'd also look into what risks it is currently facing. To that end, you should learn about the 4 warning signs we've spotted with ZipRecruiter (including 2 which don't sit too well with us).
If you are no longer interested in ZipRecruiter, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
ZipRecruiter, Inc. (NYSE:ZIP)は最大の企業ではありませんが、最近のNYSEにおける相当な価格上昇により多くの注目を集めています。株価の最近の上昇により、会社は正しい方向に向かっていますが、年間ピークにはまだ及んでいません。多数のアナリストが株式をカバーしているため、株価に対する価格感度の高い発表は既に株価に反映されている可能性があります。しかし、買いの機会がまだある場合はどうでしょうか?最新の財務データに基づくZipRecruiterの見通しと価値を見て、まだ機会があるかどうかを見てみましょう。
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。