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Why Applied Digital Corporation (APLD) Dipped More Than Broader Market Today

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The most recent trading session ended with Applied Digital Corporation (APLD - Free Report) standing at $6.84, reflecting a -1.72% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.8%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 1.18%.

Prior to today's trading, shares of the company had gained 29.37% over the past month. This has outpaced the Finance sector's gain of 5.42% and the S&P 500's gain of 3.4% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Applied Digital Corporation in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.01, reflecting a 103.45% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $56.76 million, up 359.97% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.18 per share and a revenue of $351.23 million, indicating changes of +136.73% and +534.07%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Digital Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Applied Digital Corporation holds a Zacks Rank of #3 (Hold).

Looking at valuation, Applied Digital Corporation is presently trading at a Forward P/E ratio of 39.21. This represents a premium compared to its industry's average Forward P/E of 10.38.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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