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Why Applied Digital Corporation (APLD) Outpaced the Stock Market Today

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Applied Digital Corporation (APLD - Free Report) closed the latest trading day at $7.19, indicating a +1.41% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq added 0.2%.

Shares of the company have appreciated by 55.48% over the course of the past month, outperforming the Finance sector's gain of 7.56% and the S&P 500's gain of 4.71%.

The investment community will be paying close attention to the earnings performance of Applied Digital Corporation in its upcoming release. The company is expected to report EPS of $0.01, up 103.45% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $56.76 million, reflecting a 359.97% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and a revenue of $351.23 million, representing changes of +136.73% and +534.07%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Applied Digital Corporation. These revisions help to show the ever-changing nature of 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. As of now, Applied Digital Corporation holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Applied Digital Corporation has a Forward P/E ratio of 39.94 right now. This signifies a premium in comparison to the average Forward P/E of 10.78 for its industry.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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