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

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In the latest trading session, Digital Turbine (APPS) closed at $87.05, marking a +0.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.37%.

Heading into today, shares of the mobile software company had gained 32.45% over the past month, outpacing the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 2.13% in that time.

Investors will be hoping for strength from APPS as it approaches its next earnings release. The company is expected to report EPS of $0.39, up 160% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $304 million, up 328.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.66 per share and revenue of $1.18 billion. These totals would mark changes of +124.32% and +277.12%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for APPS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. APPS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that APPS has a Forward P/E ratio of 52.27 right now. For comparison, its industry has an average Forward P/E of 67.49, which means APPS is trading at a discount to the group.

Meanwhile, APPS's PEG ratio is currently 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 4.52 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 177, which puts it in the bottom 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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