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AppLovin (APP) Stock Slides as Market Rises: Facts to Know Before You Trade
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AppLovin (APP - Free Report) closed the most recent trading day at $76.85, moving -0.88% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.
Shares of the mobile app technology company witnessed a loss of 6.84% over the previous month, trailing the performance of the Business Services sector with its loss of 0.96% and the S&P 500's loss of 0.21%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company's earnings report is set to go public on August 7, 2024. The company's upcoming EPS is projected at $0.74, signifying a 236.36% increase 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.
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.
Investors might also notice recent changes to analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. At present, AppLovin boasts a Zacks Rank of #4 (Sell).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 26.23. This valuation marks a premium compared to its industry's average Forward P/E of 23.5.
Also, we should mention that APP has a PEG ratio of 1.31. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.51.
The Technology Services industry is part of the Business Services 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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AppLovin (APP) Stock Slides as Market Rises: Facts to Know Before You Trade
AppLovin (APP - Free Report) closed the most recent trading day at $76.85, moving -0.88% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.
Shares of the mobile app technology company witnessed a loss of 6.84% over the previous month, trailing the performance of the Business Services sector with its loss of 0.96% and the S&P 500's loss of 0.21%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company's earnings report is set to go public on August 7, 2024. The company's upcoming EPS is projected at $0.74, signifying a 236.36% increase 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.
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.
Investors might also notice recent changes to analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. At present, AppLovin boasts a Zacks Rank of #4 (Sell).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 26.23. This valuation marks a premium compared to its industry's average Forward P/E of 23.5.
Also, we should mention that APP has a PEG ratio of 1.31. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.51.
The Technology Services industry is part of the Business Services 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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.