Following Peter Lynch’s approach: Does YELP INC (NYSE:YELP) fit the bill?

With a strategy that emphasized steady earnings growth and a strong market position, Peter Lynch sought out long-term winners. We put YELP INC (NYSE:YELP) to the test against his stock-picking rules.

Does YELP INC (NYSE:YELP) match Peter Lynch’s “Invest in What You Know” philosophy?

• The Return on Equity(ROE) of YELP is 17.86%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• A Debt/Equity ratio of 0.0 highlights YELP's commitment to maintaining financial stability.
• Over the past 5 years, YELP has demonstrated 24.97 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• Considering its PEG ratio of 0.68, YELP may be an undervalued growth opportunity.
• With a Current Ratio of 3.34, YELP appears well-positioned to meet its near-term financial obligations.

What is the full fundamental picture of YELP telling us.

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 7 out of 10 to YELP. YELP was compared to 70 industry peers in the Interactive Media & Services industry. YELP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. YELP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, YELP could be worth investigating further for value and quality investing!.

Our latest full fundamental report of YELP contains the most current fundamental analsysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.