Yahoo Finance Bear of the Day: 58.com (WUBA)
With threats of a trade war continuing to loom over the market you probably want to avoid going face-first into Chinese stocks right now. Eventually the selling could lead to a great opportunity, but if you are one of those contrarians, you may want to find stocks that have earnings estimates moving in a positive direction. Today’s Bear of the Day is a Chinese internet stock that’s seen its earnings estimates move to the downside. Perhaps something to avoid even if you’re looking to play a bounce.
I’m talking about 58.com (WUBA). 58.com Inc. operates online classifieds and listing platforms that enable local merchants and consumers to connect, share information, and conduct business in China. It primarily operates online multi-content category-classified advertising platforms under the 58 and Ganji names; and Anjuke, an online real estate listing platform. The company's platform contains local information of approximately 500 cities or towns in various content categories, including jobs, real estate, used goods, automotive, and yellow pages. It offers membership services, such as merchant certification and listing benefits, as well as display of online storefronts; and online marketing services comprising listing services, such as real-time bidding and priority listing, as well as marketing services through collaboration with third party Internet companies.
Currently, the stock is a Zacks Rank #5 (Strong Sell). The reason for the unfavorable Zacks Rank is the string of recent earnings estimate revisions to the downside. Looking the current year numbers, the Zacks Consensus Estimate has dropped from $2.07 to $1.97. That’s enough to give it the unfavorable Zacks Rank.
There are other stocks within the Internet Software and Services industry which have better Zacks Ranks. These include Zacks Rank #1 (Strong Buy) Momo (MOMO) as well as Zacks Rank #2 (Buy) Sabre Corp (SABR).
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58.com Inc. (WUBA) : Free Stock Analysis Report
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