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

Digital Turbine (APPS) closed at $25.51 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 1.86%. Meanwhile, the Dow gained 1.98%, and the Nasdaq, a tech-heavy index, added 0.24%.

Heading into today, shares of the mobile software company had lost 21.96% over the past month, lagging the Computer and Technology sector's loss of 13.4% and the S&P 500's loss of 12.37% in that time.

Wall Street will be looking for positivity from Digital Turbine as it approaches its next earnings report date. This is expected to be May 31, 2022. In that report, analysts expect Digital Turbine to post earnings of $0.40 per share. This would mark year-over-year growth of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $336.5 million, up 253.91% from the year-ago period.

Any recent changes to analyst estimates for Digital Turbine should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 11.99. Its industry sports an average Forward P/E of 41.35, so we one might conclude that Digital Turbine is trading at a discount comparatively.

Also, we should mention that APPS has a PEG ratio of 0.24. 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 2.27 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% 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.

To follow APPS in the coming trading sessions, be sure to utilize Zacks.com.

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