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Why the Market Dipped But AppLovin (APP) Gained Today
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AppLovin (APP - Free Report) closed at $83.22 in the latest trading session, marking a +0.12% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.41% for the day. On the other hand, the Dow registered a loss of 0.12%, and the technology-centric Nasdaq decreased by 0.71%.
The mobile app technology company's shares have seen an increase of 0.75% over the last month, surpassing the Business Services sector's gain of 0.6% and falling behind the S&P 500's gain of 3.53%.
The investment community will be paying close attention to the earnings performance of AppLovin in its upcoming release. It is anticipated that the company will report an EPS of $0.74, marking a 236.36% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.08 billion, indicating a 43.72% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.96 per share and revenue of $4.32 billion, indicating changes of +202.04% and +31.73%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, AppLovin possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, AppLovin is at present trading with a Forward P/E ratio of 28.09. This denotes a premium relative to the industry's average Forward P/E of 23.02.
It is also worth noting that APP currently has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 25% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But AppLovin (APP) Gained Today
AppLovin (APP - Free Report) closed at $83.22 in the latest trading session, marking a +0.12% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.41% for the day. On the other hand, the Dow registered a loss of 0.12%, and the technology-centric Nasdaq decreased by 0.71%.
The mobile app technology company's shares have seen an increase of 0.75% over the last month, surpassing the Business Services sector's gain of 0.6% and falling behind the S&P 500's gain of 3.53%.
The investment community will be paying close attention to the earnings performance of AppLovin in its upcoming release. It is anticipated that the company will report an EPS of $0.74, marking a 236.36% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.08 billion, indicating a 43.72% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.96 per share and revenue of $4.32 billion, indicating changes of +202.04% and +31.73%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, AppLovin possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, AppLovin is at present trading with a Forward P/E ratio of 28.09. This denotes a premium relative to the industry's average Forward P/E of 23.02.
It is also worth noting that APP currently has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 25% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.