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Digital Turbine (APPS) Gains But Lags Market: What You Should Know

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Digital Turbine (APPS) closed the most recent trading day at $73.86, moving +0.14% from the previous trading session. This move lagged the S&P 500's daily gain of 0.15%.

Prior to today's trading, shares of the mobile software company had gained 44.17% over the past month. This has outpaced the Computer and Technology sector's gain of 0.81% and the S&P 500's loss of 0.58% in that time.

APPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect APPS to post earnings of $0.39 per share. This would mark year-over-year growth of 160%. Meanwhile, our latest consensus estimate is calling for revenue of $304 million, up 328.83% from the prior-year quarter.

APPS's full-year Zacks Consensus Estimates are calling for earnings of $1.66 per share and revenue of $1.18 billion. These results would represent year-over-year changes of +124.32% and +277.12%, respectively.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #3 (Hold) right now.

Looking at its valuation, APPS is holding a Forward P/E ratio of 44.43. For comparison, its industry has an average Forward P/E of 59.05, which means APPS is trading at a discount to the group.

Investors should also note that APPS has a PEG ratio of 0.89 right now. 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 4.07 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 20% 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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