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

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Digital Turbine (APPS - Free Report) closed the most recent trading day at $74.92, moving +1.85% from the previous trading session. This change outpaced the S&P 500's 0.41% gain on the day.

Prior to today's trading, shares of the mobile software company had gained 15.64% over the past month. This has outpaced the Computer and Technology sector's loss of 7.83% and the S&P 500's loss of 4.08% in that time.

Investors will be hoping for strength from APPS as it approaches its next earnings release. On that day, APPS is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 160%. Our most recent consensus estimate is calling for quarterly revenue of $304 million, up 328.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.66 per share and revenue of $1.18 billion. These totals would mark changes of +124.32% and +277.12%, respectively, from last year.

Any recent changes to analyst estimates for APPS should also be noted by investors. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. APPS is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, APPS currently has a Forward P/E ratio of 44.31. For comparison, its industry has an average Forward P/E of 57.1, which means APPS is trading at a discount to the group.

It is also worth noting that APPS currently has a PEG ratio of 0.89. 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. The Internet - Software was holding an average PEG ratio of 4.09 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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