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AppFolio (APPF) Stock Drops Despite Market Gains: Important Facts to Note

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AppFolio (APPF - Free Report) closed the latest trading day at $231.99, indicating a -0.06% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.01%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq added 1.13%.

Coming into today, shares of the property management software maker had gained 7.63% in the past month. In that same time, the Computer and Technology sector gained 1.48%, while the S&P 500 gained 2.5%.

Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.02, reflecting a 72.88% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $198.52 million, indicating a 20% growth compared to the corresponding quarter of the prior year.

APPF's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $777.91 million. These results would represent year-over-year changes of +145.61% and +25.38%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppFolio. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. The Zacks Consensus EPS estimate has moved 1.61% higher within the past month. AppFolio currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, AppFolio is currently exchanging hands at a Forward P/E ratio of 55.3. For comparison, its industry has an average Forward P/E of 30.53, which means AppFolio is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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