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Digital Turbine (APPS) Dips More Than Broader Markets: What You Should Know

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Digital Turbine (APPS - Free Report) closed the most recent trading day at $58.40, moving -1.2% from the previous trading session. This change lagged the S&P 500's 0.25% loss on the day.

Prior to today's trading, shares of the mobile software company had lost 24.53% over the past month. This has lagged the Computer and Technology sector's loss of 3.03% and the S&P 500's gain of 1.26% in that time.

Wall Street will be looking for positivity from APPS as it approaches its next earnings report date. The company is expected to report EPS of $0.22, up 340% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $95.1 million, up 141.68% from the year-ago period.

Investors should also note any recent changes to analyst estimates for APPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 38.16% higher. APPS is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, APPS currently has a Forward P/E ratio of 51.4. This represents a discount compared to its industry's average Forward P/E of 63.57.

Investors should also note that APPS has a PEG ratio of 1.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. APPS's industry had an average PEG ratio of 3.54 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 202, which puts it in the bottom 21% 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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