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Applied Digital Corporation (APLD) Gains As Market Dips: What You Should Know

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Applied Digital Corporation (APLD - Free Report) closed at $4.99 in the latest trading session, marking a +0.6% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.

Prior to today's trading, shares of the company had lost 15.93% over the past month. This has lagged the Finance sector's gain of 1.95% and the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from Applied Digital Corporation as it approaches its next earnings release. In that report, analysts expect Applied Digital Corporation to post earnings of -$0.02 per share. This would mark year-over-year growth of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.05 million, up 507.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $376.47 million. These totals would mark changes of +183.67% and +821.5%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Applied Digital Corporation. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Applied Digital Corporation is currently a Zacks Rank #3 (Hold).

Investors should also note Applied Digital Corporation's current valuation metrics, including its Forward P/E ratio of 12.1. This valuation marks a premium compared to its industry's average Forward P/E of 10.32.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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