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

Zacks Equity Research
·3 min read

Digital Turbine (APPS) closed the most recent trading day at $35.81, moving -1.97% from the previous trading session. This change lagged the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.5%.

Investors will be hoping for strength from APPS as it approaches its next earnings release. On that day, APPS is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 120%. Our most recent consensus estimate is calling for quarterly revenue of $60.78 million, up 85.3% 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 $246.29 million. These totals would mark changes of +135% and +77.55%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for APPS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. APPS is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, APPS is holding a Forward P/E ratio of 78.56. Its industry sports an average Forward P/E of 81.37, so we one might conclude that APPS is trading at a discount comparatively.

We can also see that APPS currently has a PEG ratio of 1.57. 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 was holding an average PEG ratio of 6.37 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.

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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Zacks Investment Research