Digital Turbine (APPS) Stock Sinks As Market Gains: What You Should Know
Digital Turbine (APPS) closed at $71.06 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500's 0.47% gain on the day.
Prior to today's trading, shares of the mobile software company had gained 23.54% over the past month. This has outpaced the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% 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 $0.31 per share, which would represent year-over-year growth of 138.46%. Our most recent consensus estimate is calling for quarterly revenue of $190.06 million, up 222.08% from the year-ago period.
APPS's full-year Zacks Consensus Estimates are calling for earnings of $1.56 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +110.81% and +257.73%, respectively.
Investors should also note any recent changes to analyst estimates for APPS. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 21.91% higher. APPS is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note APPS's current valuation metrics, including its Forward P/E ratio of 46.08. This represents a discount compared to its industry's average Forward P/E of 60.07.
It is also worth noting that APPS currently has a PEG ratio of 0.92. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.23 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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