Bull Of The Day: Rover Group (ROVR)

Rover Group (ROVR) is a Zacks Rank #1 (Buy) and it sports an F for Value and an A for Growth. This stock just reported a solid quarter and the stock is soaring as a result. Let’s explore more about this company in this Bull of The Day article.

Description

Rover Inc. provides online marketplace for pet care. It connects pet parents with pet providers who offer overnight services, including boarding and in-home pet sitting, as well as daytime services, including doggy daycare, dog walking, drop-in visits and grooming. Rover Inc., is based in San Francisco.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.

For Rover Group, I see four straight beats of the Zacks Consensus Estimate over the last calendar year. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher.

Over the last 60 days, earnings estimates have increased for ROVR.

The current quarter and next quarter are holding still at $0.03

The full year numbers are more important… and they are moving higher.

This year has moved from $0.01 to $0.03

Next year is now at $0.08 move up from $0.03.

Valuation

The valuation is a little high with the stock trading at 255x forward estimates with the industry average coming in at 27x. Price to book of 4x is well below the 4.9 industry average. Price to sales is at 5.8x and that is above the industry average of 1.9x.

Those valuation metrics are a little high, but keep in mind the company has just made the swing to profitability and that puts it on a lot more radar screens.

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