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

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In the latest trading session, Digital Turbine (APPS - Free Report) closed at $83.70, marking a -0.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.51%.

Prior to today's trading, shares of the mobile software company had gained 19.28% over the past month. This has outpaced the Computer and Technology sector's loss of 1.72% and the S&P 500's gain of 3.08% in that time.

Wall Street will be looking for positivity from APPS as it approaches its next earnings report date. This is expected to be November 2, 2021. The company is expected to report EPS of $0.39, up 160% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $304 million, up 328.83% from the prior-year quarter.

APPS's full-year Zacks Consensus Estimates are calling for earnings of $1.66 per share and revenue of $1.18 billion. These results would represent year-over-year changes of +124.32% and +277.12%, respectively.

It is also important to note the 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. APPS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, APPS is holding a Forward P/E ratio of 50.69. This valuation marks a discount compared to its industry's average Forward P/E of 71.59.

Investors should also note that APPS has a PEG ratio of 1.01 right now. 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 4.8 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.

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


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