In the latest trading session, Digital Turbine (APPS) closed at $20.07, marking a +0.8% move from the previous day. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the mobile software company had gained 13.97% over the past month. This has outpaced the Computer and Technology sector's gain of 6.64% and the S&P 500's gain of 6.69% in that time.
Digital Turbine will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2022. The company is expected to report EPS of $0.35, up 2.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $184.68 million, down 13.14% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.60 per share and revenue of $844.27 million. These totals would mark changes of -3.61% and -22%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Digital Turbine. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 8.17% lower within the past month. Digital Turbine currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Digital Turbine is currently trading at a Forward P/E ratio of 12.48. For comparison, its industry has an average Forward P/E of 42.81, which means Digital Turbine is trading at a discount to the group.
We can also see that APPS currently has a PEG ratio of 0.46. 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. The Internet - Software was holding an average PEG ratio of 2.36 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 137, which puts it in the bottom 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
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