Should I buy 50 shares of ZETA today considering they'll probably beat earnings today? Their metrics seem very good as well.
11/11/2024 07:53pm
**The decision to buy 50 shares of ZETA today should be approached with caution**, considering the upcoming earnings release and the current analyst expectations. Here's a detailed analysis to support this view:
1. **Earnings Expectations**: Zeta Global Holdings Corp. ZETA is scheduled to release its third-quarter 2024 results on November 11, 2024. Analysts expect the company to post earnings of $0.17 per share for the quarter, which represents an 88.9% surge from the year-ago quarter's actual. This suggests a strong potential for positive earnings, which could positively impact the stock price.
2. **Revenue Expectations**: The consensus estimate for ZETA's revenues is pegged at $248.5 million, indicating a 31.5% rise from the year-ago quarter’s actual. This indicates a solid growth trajectory in terms of revenue, which is a positive indicator for the company's financial health and future prospects.
3. **Stock Price and Metrics**: The closing price of ZETA on November 8, 2024, was $35.58, which is above the expected earnings per share (EPS) of $0.17. This suggests that the stock may already be pricing in some of the positive earnings expectations. However, the market's reaction to the earnings report could still drive the stock price higher if the actual earnings exceed expectations.
4. **Analyst Ratings and Price Targets**: The stock has a consensus rating of "Buy" with an average price target of $35.00. This indicates that analysts believe the stock has potential for further growth, which could be a positive sign for investors considering a purchase.
5. **Risk Considerations**: While the earnings beat is anticipated, it's important to consider the potential for a negative surprise or a cautious market reaction. Additionally, the consensus EPS estimate for the quarter has been revised 140% lower over the last 30 days to the current level, which could indicate some uncertainty among analysts. This revision could lead to increased volatility in the stock price if the earnings do not meet expectations.
6. **Market Conditions**: It's also important to consider broader market conditions and investor sentiment, which can influence the stock price even if the earnings report is positive.
In conclusion, while the earnings beat and revenue growth expectations are positive indicators, the potential for a negative surprise or cautious market reaction, along with the stock's current price relative to earnings expectations, suggests that the decision to buy 50 shares of ZETA today should be approached with caution. Investors should consider their investment strategy, risk tolerance, and the potential for short-term volatility before making a decision.