Yelp reports first-quarter earnings May 10

Saturday, May 5, 2018 7:51 AM | Michael Fowlkes

What's Happening with yelp

Social media company Yep (YELP) reports first-quarter numbers May 10. Analysts expect the company to earn 15 cents per share for the quarter, versus a profit of 19 cents during the same period last year. YELP shares have gained 4.7% on the year.

Technical Analysis

YELP was recently trading at $45.27, down $3.13 from its 12-month high and $18.34 above its 12-month low. Overall technical indicators for YELP are neutral with a sideways trend. The stock has recent support above $43.00, and recent resistance below $45.50. Of the 25 analysts who cover the stock, 10 rate it a "strong buy", three rate it a "buy", 11 rate it a "hold", and one rates it a "strong sell". YELP gets a score of 63 from InvestorsObserver's Stock Score Report.

Analysts' Thoughts

YELP has a history of posting big positive earnings surprises, and the company will need another earnings beat to avoid posting a year over year earnings decline. The stock has a very high valuation, with a forward P/E of 87.1, which has kept a ceiling on the stock over the last year and will likely continue to prevent any meaningful breakout following the report barring a huge earnings surprise. Analysts are cautiously optimistic on the stock, with a $47.12 price target versus its current price of $45.27, suggesting some upside, but a limited amount based on its current valuation. The stock can be volatile, so there is the outside chance of a big move higher, but results will need to greatly outpace analysts, while even a small earnings miss could drive shares sharply lower. There is enough upside potential to warrant holding the stock, but current shareholders should have a clear exit strategy in place just in case the quarterly numbers fail to impress Wall Street.

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