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AppFolio (APPF) Outpaces Stock Market Gains: What You Should Know

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AppFolio (APPF - Free Report) ended the recent trading session at $264.62, demonstrating a +1.25% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 1.85%, and the Nasdaq, a tech-heavy index, added 0.2%.

Shares of the property management software maker have appreciated by 13.52% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 3.82%.

Investors will be eagerly watching for the performance of AppFolio in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 25, 2024. It is anticipated that the company will report an EPS of $0.92, marking a 300% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $188.32 million, showing a 28.04% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.98 per share and a revenue of $772.63 million, indicating changes of +132.75% and +24.53%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for AppFolio. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, the Zacks Consensus EPS estimate has remained steady. At present, AppFolio boasts a Zacks Rank of #3 (Hold).

With respect to valuation, AppFolio is currently being traded at a Forward P/E ratio of 65.64. This expresses a premium compared to the average Forward P/E of 29.87 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 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.

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


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