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Digital Turbine (APPS) Gains As Market Dips: What You Should Know

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In the latest trading session, Digital Turbine (APPS) closed at $63.65, marking a +1.11% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.18%.

Prior to today's trading, shares of the mobile software company had lost 7.79% over the past month. This has lagged the Computer and Technology sector's gain of 3.16% and the S&P 500's gain of 2.44% in that time.

Investors will be hoping for strength from APPS as it approaches its next earnings release, which is expected to be August 9, 2021. In that report, analysts expect APPS to post earnings of $0.31 per share. This would mark year-over-year growth of 138.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $190.06 million, up 222.08% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.56 per share and revenue of $1.12 billion, which would represent changes of +110.81% and +257.73%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for APPS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. APPS is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that APPS has a Forward P/E ratio of 40.35 right now. This represents a discount compared to its industry's average Forward P/E of 62.66.

Also, we should mention that APPS has a PEG ratio of 0.81. 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 industry currently had an average PEG ratio of 3.63 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% 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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