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Applied Digital Corporation (APLD) Dips More Than Broader Markets: What You Should Know

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Applied Digital Corporation (APLD - Free Report) closed at $6.24 in the latest trading session, marking a -1.42% move from the prior day. This move lagged the S&P 500's daily loss of 0.27%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the company had gained 4.8% in the past month. In that same time, the Finance sector lost 1.83%, while the S&P 500 lost 2.86%.

Investors will be hoping for strength from Applied Digital Corporation as it approaches its next earnings release, which is expected to be October 9, 2023. On that day, Applied Digital Corporation is projected to report earnings of -$0.03 per share, which would represent year-over-year growth of 40%. Meanwhile, our latest consensus estimate is calling for revenue of $35.13 million, up 407.6% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.24 per share and revenue of $345.49 million, which would represent changes of +148.98% and +745.68%, respectively, from the prior year.

Any recent changes to analyst estimates for Applied Digital Corporation should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 40.65% lower. Applied Digital Corporation is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Applied Digital Corporation has a Forward P/E ratio of 26.01 right now. Its industry sports an average Forward P/E of 9.67, so we one might conclude that Applied Digital Corporation is trading at a premium comparatively.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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.

To follow APLD in the coming trading sessions, be sure to utilize Zacks.com.


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