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AppLovin (APP) Stock Declines While Market Improves: Some Information for Investors
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AppLovin (APP - Free Report) closed the latest trading day at $86.53, indicating a -1.59% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow experienced a rise of 1.85%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Coming into today, shares of the mobile app technology company had gained 12.07% in the past month. In that same time, the Business Services sector gained 2.71%, while the S&P 500 gained 3.82%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on August 7, 2024. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 236.36% increase from the same quarter last 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and a revenue of $4.32 billion, representing changes of +202.04% and +31.73%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. AppLovin is currently a Zacks Rank #4 (Sell).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 29.75. This expresses a premium compared to the average Forward P/E of 23.15 of its industry.
One should further note that APP currently holds a PEG ratio of 1.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.48.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.
To follow APP in the coming trading sessions, be sure to utilize Zacks.com.
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AppLovin (APP) Stock Declines While Market Improves: Some Information for Investors
AppLovin (APP - Free Report) closed the latest trading day at $86.53, indicating a -1.59% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow experienced a rise of 1.85%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Coming into today, shares of the mobile app technology company had gained 12.07% in the past month. In that same time, the Business Services sector gained 2.71%, while the S&P 500 gained 3.82%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on August 7, 2024. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 236.36% increase from the same quarter last 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and a revenue of $4.32 billion, representing changes of +202.04% and +31.73%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. AppLovin is currently a Zacks Rank #4 (Sell).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 29.75. This expresses a premium compared to the average Forward P/E of 23.15 of its industry.
One should further note that APP currently holds a PEG ratio of 1.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.48.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.
To follow APP in the coming trading sessions, be sure to utilize Zacks.com.