Jumia Technologies (JMIA) Declines More Than Market: Some Information for Investors

Jumia Technologies closed the latest trading day at $12.29, indicating a +0.41% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.93%.

The company's stock has climbed by 68.13% in the past month, exceeding the Retail-Wholesale sector's loss of 2.37% and the S&P 500's loss of 0.26%.

The upcoming earnings release of Jumia Technologies will be of great interest to investors. The company's earnings report is expected on August 6, 2024.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.25 per share and a revenue of $208.18 million, indicating changes of +74.49% and +4.57%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Jumia Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Jumia Technologies is carrying a Zacks Rank of #2 (Buy).

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Jumia Technologies been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Jumia Technologies is a member of our Retail-Wholesale group, which includes 210 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Jumia Technologies is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for JMIA's full-year earnings has moved 26.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, JMIA has gained about 246.7% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 9.8%. This shows that Jumia Technologies is outperforming its peers so far this year.

Another stock in the Retail-Wholesale sector, TJX , has outperformed the sector so far this year. The stock's year-to-date return is 18.6%.

Over the past three months, TJX's consensus EPS estimate for the current year has increased 0.6%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Jumia Technologies belongs to the Internet - Commerce industry, a group that includes 36 individual stocks and currently sits at #61 in the Zacks Industry Rank. On average, this group has gained an average of 14.8% so far this year, meaning that JMIA is performing better in terms of year-to-date returns.

TJX, however, belongs to the Retail - Discount Stores industry. Currently, this 9-stock industry is ranked #58. The industry has moved +15.4% so far this year.

Jumia Technologies and TJX could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.

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On CNBC's “Mad Money Lightning Round,” Jim Cramer said Jumia Technologies AG is not making a lot of money.

The company will release results for the second quarter before the opening bell on Tuesday, Aug. 6.

Benchmark analyst Fawne Jiang initiated coverage of Jumia’s stock on July 9 with a Buy rating and a $14 price target. The African e-commerce company is poised to benefit from multi-year and potentially multi-decade e-commerce growth in the region.

See Also: Jim Cramer Recommended This Bank A Month Before It Collapsed, An Example Of ‘His Reverse Midas Touch’

When asked about Adeia Inc. , he said, “I would actually put Trade, TTD, which was down very badly today off of Alphabet, and I think that's the one you want to buy.”

Adeia will announce its financial results for the second quarter on Tuesday, Aug. 6, after the closing bell. Analysts expect the company to report quarterly earnings at 23 cents per share on revenue of $84.25 million.

The “Mad Money” host said he likes Broadcom Inc. . “I think it's absolutely terrific. It's going to get hammered along with the rest of the rotation,” he added.

On July 17, Cantor Fitzgerald analyst C J Muse maintained Broadcom with an Overweight rating, while adjusting target to $200 from $2,000 (10-1 stock split).

“I've always been a believer in the gold stocks,” Cramer said when asked about Hecla Mining Company . “It's not always worked out, but right now it is. Yours is good.”

Hecla Mining will release its second quarter operational and financial results after the closing bell on Aug. 6. Analysts expect the company to report quarterly earnings at 4 cents per share on revenue of $219.2 million.

Cramer recommended buying AeroVironment, Inc. . “All I know is that drones work,” he noted.

On July 23, René Carbone Bardorf joined AeroVironment (AV) as Vice President of Marketing and Communications.

Price Action:

• Adeia shares fell 3.6% to settle at $11.38 on Wednesday.
• Hecla Mining shares fell 1% to settle at $5.88.
• Jumia dipped 11.3% to close at $12.24 during Wednesday's session.
• AeroVironment shares slipped 0.7% to settle at $170.31.
• Broadcom shares fell 7.6% to settle at $151.34 on Wednesday.

Read Next:

• Nvidia, McDonald’s And 2 Other Stocks Insiders Are Selling

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Jumia Technologies closed the most recent trading day at $13.20, moving +0.99% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.4%.

Shares of the company witnessed a gain of 40.69% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 1.3% and the S&P 500's gain of 3.78%.

Investors will be eagerly watching for the performance of Jumia Technologies in its upcoming earnings disclosure.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.25 per share and revenue of $208.18 million, which would represent changes of +74.49% and +4.57%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Jumia Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Jumia Technologies holds a Zacks Rank of #2 (Buy).

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Jumia Technologies , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Jumia Technologies currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here

Set to Beat the Market?

Let's discuss some of the components of the Momentum Style Score for JMIA that show why this company shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For JMIA, shares are up 54.49% over the past week while the Zacks Internet - Commerce industry is up 2.53% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 40.69% compares favorably with the industry's 2.31% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Jumia Technologies have increased 231.73% over the past quarter, and have gained 216.46% in the last year. On the other hand, the S&P 500 has only moved 10% and 27.2%, respectively.

Investors should also pay attention to JMIA's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. JMIA is currently averaging 5,429,065 shares for the last 20 days.

Earnings Outlook

The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with JMIA.

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost JMIA's consensus estimate, increasing from -$0.34 to -$0.25 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Taking into account all of these elements, it should come as no surprise that JMIA is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Jumia Technologies on your short list.

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