Digital Turbine (APPS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Digital Turbine (APPS) closed at $16.39, marking a -0.06% move from the previous day. This change lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.44%.
Prior to today's trading, shares of the mobile software company had gained 18.07% over the past month. This has outpaced the Computer and Technology sector's gain of 11.1% and the S&P 500's gain of 4.57% in that time.
Digital Turbine will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.37, down 24.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $186.22 million, down 50.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.40 per share and revenue of $721.38 million. These totals would mark changes of -15.66% and -33.36%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Digital Turbine. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Digital Turbine is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Digital Turbine is holding a Forward P/E ratio of 11.69. For comparison, its industry has an average Forward P/E of 42.46, which means Digital Turbine is trading at a discount to the group.
Meanwhile, APPS's PEG ratio is currently 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.21 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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