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AppLovin (APP) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, AppLovin (APP - Free Report) closed at $83.24, marking a +1.76% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.08%. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.58%.
The the stock of mobile app technology company has risen by 4.1% in the past month, leading the Business Services sector's loss of 3.28% and the S&P 500's gain of 0.43%.
The investment community will be paying close attention to the earnings performance of AppLovin in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company is expected to report EPS of $0.74, up 236.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 43.72% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.96 per share and revenue of $4.32 billion. These totals would mark changes of +202.04% and +31.73%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. AppLovin is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, AppLovin is holding a Forward P/E ratio of 27.67. For comparison, its industry has an average Forward P/E of 23.07, which means AppLovin is trading at a premium to the group.
We can additionally observe that APP currently boasts a PEG ratio of 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Technology Services industry stood at 1.41 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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AppLovin (APP) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, AppLovin (APP - Free Report) closed at $83.24, marking a +1.76% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.08%. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.58%.
The the stock of mobile app technology company has risen by 4.1% in the past month, leading the Business Services sector's loss of 3.28% and the S&P 500's gain of 0.43%.
The investment community will be paying close attention to the earnings performance of AppLovin in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company is expected to report EPS of $0.74, up 236.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 43.72% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.96 per share and revenue of $4.32 billion. These totals would mark changes of +202.04% and +31.73%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. AppLovin is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, AppLovin is holding a Forward P/E ratio of 27.67. For comparison, its industry has an average Forward P/E of 23.07, which means AppLovin is trading at a premium to the group.
We can additionally observe that APP currently boasts a PEG ratio of 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Technology Services industry stood at 1.41 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.