Back to top

Image: Bigstock

Applied Digital Corporation (APLD) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

The most recent trading session ended with Applied Digital Corporation (APLD - Free Report) standing at $6.51, reflecting a -0.76% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.

Shares of the company witnessed a gain of 53.27% over the previous month, beating the performance of the Finance sector with its gain of 8.98% and the S&P 500's gain of 5.21%.

Market participants will be closely following the financial results of Applied Digital Corporation in its upcoming release. The company is forecasted to report an EPS of $0.01, showcasing a 103.45% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $56.76 million, showing a 359.97% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $351.23 million, which would represent changes of +136.73% and +534.07%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Digital Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Applied Digital Corporation presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Applied Digital Corporation is currently being traded at a Forward P/E ratio of 36.96. For comparison, its industry has an average Forward P/E of 10.42, which means Applied Digital Corporation is trading at a premium to the group.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 43% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Applied Digital Corporation (APLD) - free report >>

Published in