Vimeo, Inc. (VMEO) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Vimeo, Inc. (VMEO)? Shares have been on the move with the stock up 8.3% over the past month. The stock hit a new 52-week high of $7.9 in the previous session. Vimeo, Inc. has gained 86.7% since the start of the year compared to the 23.9% move for the Zacks Business Services sector and the 56.3% return for the Zacks Technology Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2024, Vimeo reported EPS of $0.05 versus consensus estimate of $0.01.For the current fiscal year, Vimeo is expected to post earnings of $0.18 per share on $414.43 million in revenues. This represents a 38.46% change in EPS on a -0.67% change in revenues. For the next fiscal year, the company is expected to earn $0.17 per share on $423.07 million in revenues. This represents a year-over-year change of -5.56% and 2.08%, respectively.Valuation MetricsVimeo may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Vimeo has a Value Score of C. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 39.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.7X. On a trailing cash flow basis, the stock currently trades at 45.8X versus its peer group's average of 13.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Vimeo currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Vimeo meets the list of requirements. Thus, it seems as though Vimeo shares could still be poised for more gains ahead.How Does VMEO Stack Up to the Competition?Shares of VMEO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Qifu Technology, Inc. (QFIN). QFIN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.Earnings were strong last quarter. Qifu Technology, Inc. beat our consensus estimate by 24.29%, and for the current fiscal year, QFIN is expected to post earnings of $6.40 per share on revenue of $2.33 billion.Shares of Qifu Technology, Inc. have gained 24.1% over the past month, and currently trade at a forward P/E of 6.67X and a P/CF of 10.01X.The Technology Services industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VMEO and QFIN, even beyond their own solid fundamental situation.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vimeo, Inc. (VMEO): Free Stock Analysis Report Qifu Technology, Inc. (QFIN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks