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

Digital Turbine (APPS) closed the most recent trading day at $17.19, moving -1.6% from the previous trading session. This change lagged the S&P 500's 1.06% gain on the day. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the mobile software company had lost 19.27% over the past month. This has lagged the Computer and Technology sector's loss of 8.63% and the S&P 500's loss of 8.3% in that time.

Wall Street will be looking for positivity from Digital Turbine as it approaches its next earnings report date. In that report, analysts expect Digital Turbine to post earnings of $0.39 per share. This would mark year-over-year growth of 14.71%. Our most recent consensus estimate is calling for quarterly revenue of $184.68 million, down 13.14% from the year-ago period.

APPS's full-year Zacks Consensus Estimates are calling for earnings of $1.72 per share and revenue of $863.64 million. These results would represent year-over-year changes of +3.61% and -20.21%, respectively.

Investors might also notice recent changes to analyst estimates for Digital Turbine. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 16.62% lower. Digital Turbine is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Digital Turbine currently has a Forward P/E ratio of 10.16. For comparison, its industry has an average Forward P/E of 41.38, which means Digital Turbine is trading at a discount to the group.

Also, we should mention that APPS has a PEG ratio of 0.38. 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 industry currently had an average PEG ratio of 2.33 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 144, which puts it in the bottom 44% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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