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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 the most recent trading day at $14.67, moving -0.07% from the previous trading session. This change lagged the S&P 500's 1.49% gain on the day. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 0.06%.

Coming into today, shares of the mobile software company had lost 10.76% in the past month. In that same time, the Computer and Technology sector lost 5.29%, while the S&P 500 lost 3.49%.

Wall Street will be looking for positivity from Digital Turbine as it approaches its next earnings report date. The company is expected to report EPS of $0.37, down 24.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $186.22 million, down 50.41% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.40 per share and revenue of $721.38 million. These totals would mark changes of -15.66% and -33.36%, respectively, from last year.

Any recent changes to analyst estimates for Digital Turbine should also be noted by investors. 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.

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 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. Digital Turbine is currently a Zacks Rank #3 (Hold).

Digging into valuation, Digital Turbine currently has a Forward P/E ratio of 10.46. This valuation marks a discount compared to its industry's average Forward P/E of 45.21.

Meanwhile, APPS's PEG ratio is currently 0.76. 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 2.07 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

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