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Digital Turbine (APPS) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Digital Turbine (APPS) closed the most recent trading day at $6.56, moving -0.46% from the previous trading session. This move lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.95%, and the Nasdaq, a tech-heavy index, lost 0.83%.

Coming into today, shares of the mobile software company had lost 2.66% in the past month. In that same time, the Computer and Technology sector gained 0.35%, while the S&P 500 lost 0.1%.

Wall Street will be looking for positivity from APPS as it approaches its next earnings report date. The company is expected to report EPS of $0.04, up 300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.55 million, up 32.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.20 per share and revenue of $130.89 million. These totals would mark changes of +150% and +26.37%, respectively, from last year.

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Investors should also note any recent changes to analyst estimates for APPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. APPS is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, APPS currently has a Forward P/E ratio of 32.95. For comparison, its industry has an average Forward P/E of 53.42, which means APPS is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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Zacks Investment Research