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Digital Turbine (APPS) Gains But Lags Market: What You Should Know

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In the latest trading session, Digital Turbine (APPS - Free Report) closed at $62.05, marking a +0.99% move from the previous day. This move lagged the S&P 500's daily gain of 1.52%.

Prior to today's trading, shares of the mobile software company had lost 9.27% over the past month. This has lagged the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 2.41% in that time.

Investors will be hoping for strength from APPS as it approaches its next earnings release. The company is expected to report EPS of $0.31, up 138.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $190.06 million, up 222.08% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.56 per share and revenue of $1.12 billion, which would represent changes of +110.81% and +257.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for APPS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. APPS currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, APPS is currently trading at a Forward P/E ratio of 39.38. Its industry sports an average Forward P/E of 67.61, 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 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 3.47 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 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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