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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 $17.69, marking a -1.97% move from the previous day. This change lagged the S&P 500's 1.13% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.16%.

Prior to today's trading, shares of the mobile software company had lost 23.67% over the past month. This has lagged the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 7.59% in that time.

Wall Street will be looking for positivity from Digital Turbine as it approaches its next earnings report date. In that report, analysts expect Digital Turbine to post earnings of $0.32 per share. This would mark a year-over-year decline of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $176.3 million, down 43.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.43 per share and revenue of $755.69 million, which would represent changes of -13.86% and -30.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Digital Turbine. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Digital Turbine is currently sporting a Zacks Rank of #5 (Strong Sell).

Investors should also note Digital Turbine's current valuation metrics, including its Forward P/E ratio of 12.66. Its industry sports an average Forward P/E of 44.02, so we one might conclude that Digital Turbine is trading at a discount comparatively.

Investors should also note that APPS has a PEG ratio of 1.27 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.54 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 143, putting it in the bottom 44% 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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