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

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Digital Turbine (APPS - Free Report) closed at $62.57 in the latest trading session, marking a -1.93% move from the prior day. This change lagged the S&P 500's daily gain of 0.24%.

Coming into today, shares of the mobile software company had lost 17.68% in the past month. In that same time, the Computer and Technology sector gained 2.93%, while the S&P 500 gained 4.09%.

APPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect APPS to post earnings of $0.31 per share. This would mark year-over-year growth of 138.46%. Meanwhile, our latest consensus estimate is calling for revenue of $190.06 million, up 222.08% from the prior-year quarter.

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 typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. APPS is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that APPS has a Forward P/E ratio of 40.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 67.98.

Also, we should mention that APPS has a PEG ratio of 0.82. 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. The Internet - Software industry currently had an average PEG ratio of 3.73 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 212, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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