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Digital Turbine (APPS) Dips More Than Broader Markets: What You Should Know

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Digital Turbine (APPS - Free Report) closed the most recent trading day at $60.06, moving -7.74% from the previous trading session. This move lagged the S&P 500's daily loss of 1.04%.

Heading into today, shares of the mobile software company had lost 24.77% over the past month, lagging the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 3.83% in that time.

Investors will be hoping for strength from APPS as it approaches its next earnings release. The company is expected to report EPS of $0.22, up 340% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $95.1 million, up 141.68% from the year-ago period.

Investors should also note any recent changes to analyst estimates for APPS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 16.67% higher. APPS is currently a Zacks Rank #1 (Strong Buy).

Investors should also note APPS's current valuation metrics, including its Forward P/E ratio of 56.61. This represents a discount compared to its industry's average Forward P/E of 65.78.

Meanwhile, APPS's PEG ratio is currently 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 3.88 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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