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

Zacks Equity Research
·3 mins read

Digital Turbine (APPS) closed at $32.79 in the latest trading session, marking a +1.36% move from the prior day. This move outpaced the S&P 500's daily loss of 1.12%. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 1.07%.

Prior to today's trading, shares of the mobile software company had gained 14.96% over the past month. This has outpaced the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 0.59% 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 $0.11, up 120% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.73 million, up 85.15% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.47 per share and revenue of $245.66 million. These totals would mark changes of +135% and +77.1%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for APPS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. APPS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, APPS is holding a Forward P/E ratio of 69.57. This valuation marks a discount compared to its industry's average Forward P/E of 71.8.

Also, we should mention that APPS has a PEG ratio of 1.39. 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. APPS's industry had an average PEG ratio of 5.52 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 176, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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