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

In the latest trading session, Digital Turbine (APPS) closed at $21.35, marking a +1.52% move from the previous day. This move outpaced the S&P 500's daily gain of 0.99%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.31%.

Heading into today, shares of the mobile software company had gained 33.52% over the past month, outpacing the Computer and Technology sector's loss of 11.18% and the S&P 500's gain of 7.91% in that time.

Investors will be hoping for strength from Digital Turbine as it approaches its next earnings release. The company is expected to report EPS of $0.35, up 2.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $184.68 million, down 13.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $863.64 million. These totals would mark changes of +3.61% and -20.21%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Digital Turbine. 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.

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. Digital Turbine is currently a Zacks Rank #3 (Hold).

Investors should also note Digital Turbine's current valuation metrics, including its Forward P/E ratio of 12.23. This represents a discount compared to its industry's average Forward P/E of 45.82.

Meanwhile, APPS's PEG ratio is currently 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. APPS's industry had an average PEG ratio of 2.71 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 134, which puts it in the bottom 47% 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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