Revenue Recovery Will Be Key for Match Group Stock Growth

MTCH has fallen more than 6% year-to-date

facebook twitter linkedin


The shares of Match Group, Inc. (NASDAQ:MTCH) are up 3.5% to trade at $141.35 at last check. Though a reason for today's pop is not quite clear, it could be related to some broader market tailwinds in light of the first fully approved Covid-19 vaccine. The stock has had a volatile year so far, however, falling to its lowest level since March earlier this month, after running into overhead pressure at the $168 level in late July. Year-to-date, MTCH is off 6.7%, despite its 26.2% year-over-year lead.

MTCH

The brokerage bunch has been bullish towards the security, with 12 of the 15 analysts in question carrying a "buy" or better rating, while the remaining three said "hold." Plus, the 12-month consensus target price of $173.22 is a substantial 22.7% premium to current levels.

Conversely, the options pits lean bearish. This is per Match Group stock's Schaeffer's put/call open interest ratio (SOIR) of 1.35, which stands higher than 94% of readings from the last year. In other words, these traders have rarely been more put biased. 

The security's trailing 12-month revenues have grown just 11.5% compared to what was reported in 2020. This increase has signaled a relatively slow recovery rate, after MTCH experienced a 50% drop in revenues in 2020. Prior to that, MTCH's revenues had grown 44% between 2017 and 2019.

The equity has performed more consistently in recent years, growing its net income by 87% since 2017. However, MTCH's valuation remains extremely high, with the security trading at a price-earnings ratio of 78.47. What's more, it has a forward price-earnings ratio of 55.56, which is still a rich valuation. The equity's fundamentals also suggest it could continue its bearish movement in the short-term, though it is still a promising growth stock option for investors with an outlook of two years or longer.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners