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

Digital Turbine (APPS) closed the most recent trading day at $12.91, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.45%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.52%.

Prior to today's trading, shares of the mobile software company had gained 40.06% over the past month. This has outpaced the Computer and Technology sector's gain of 5.91% and the S&P 500's gain of 2.08% in that time.

APPS will be looking to display strength as it nears its next earnings release. On that day, APPS is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 80%. Meanwhile, our latest consensus estimate is calling for revenue of $48.49 million, up 58.71% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.40 per share and revenue of $210.95 million, which would represent changes of +100% and +52.08%, respectively, from the prior year.

Any recent changes to analyst estimates for APPS 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 19.66% higher. APPS is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, APPS is currently trading at a Forward P/E ratio of 31.69. For comparison, its industry has an average Forward P/E of 67.19, which means APPS is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 56, which puts 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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