Yahoo Finance Why the Market Dipped But AppLovin (APP) Gained Today
AppLovin (APP) closed the most recent trading day at $78.58, moving +1.81% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.18%.
Shares of the mobile app technology company have depreciated by 2.62% over the course of the past month, underperforming the Business Services sector's gain of 0.15% and the S&P 500's gain of 3.15%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.74, indicating a 236.36% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 43.72% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.96 per share and a revenue of $4.32 billion, signifying shifts of +202.04% and +31.73%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, AppLovin boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, AppLovin is currently trading at a Forward P/E ratio of 26.09. This signifies a premium in comparison to the average Forward P/E of 21.73 for its industry.
It is also worth noting that APP currently has a PEG ratio of 1.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.38.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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AppLovin Corporation (APP) : Free Stock Analysis Report
