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Digital Turbine (APPS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Digital Turbine (APPS) closed the most recent trading day at $7.23, moving +0.42% from the previous trading session. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.7%.

Coming into today, shares of the mobile software company had gained 7.7% in the past month. In that same time, the Computer and Technology sector gained 2.38%, while the S&P 500 gained 2.04%.

Investors will be hoping for strength from APPS as it approaches its next earnings release, which is expected to be November 4, 2019. On that day, APPS is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.55 million, up 32.26% from the year-ago period.

APPS's full-year Zacks Consensus Estimates are calling for earnings of $0.20 per share and revenue of $130.89 million. These results would represent year-over-year changes of +150% and +26.37%, respectively.

Investors should also note any recent changes to analyst estimates for APPS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. APPS is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note APPS's current valuation metrics, including its Forward P/E ratio of 36. For comparison, its industry has an average Forward P/E of 54.51, which means APPS is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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

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