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

Digital Turbine (APPS) closed at $54.63 in the latest trading session, marking a -1.94% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Coming into today, shares of the mobile software company had lost 3.16% in the past month. In that same time, the Computer and Technology sector lost 1%, while the S&P 500 gained 3.67%.

Investors will be hoping for strength from Digital Turbine as it approaches its next earnings release. In that report, analysts expect Digital Turbine to post earnings of $0.43 per share. This would mark year-over-year growth of 104.76%. Our most recent consensus estimate is calling for quarterly revenue of $353.1 million, up 298.57% from the year-ago period.

APPS's full-year Zacks Consensus Estimates are calling for earnings of $1.58 per share and revenue of $1.2 billion. These results would represent year-over-year changes of +113.51% and +283.79%, respectively.

Any recent changes to analyst estimates for Digital Turbine should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Digital Turbine is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Digital Turbine's current valuation metrics, including its Forward P/E ratio of 35.26. Its industry sports an average Forward P/E of 57.51, so we one might conclude that Digital Turbine is trading at a discount comparatively.

Meanwhile, APPS's PEG ratio is currently 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.12 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% 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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