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AppLovin (APP) Stock Declines While Market Improves: Some Information for Investors

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AppLovin (APP - Free Report) ended the recent trading session at $72.99, demonstrating a -1.12% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.35%.

The mobile app technology company's shares have seen an increase of 6.65% over the last month, surpassing the Business Services sector's loss of 4.37% and the S&P 500's loss of 2%.

Market participants will be closely following the financial results of AppLovin in its upcoming release. The company plans to announce its earnings on May 8, 2024. The company's upcoming EPS is projected at $0.57, signifying a 5800% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $969.86 million, indicating a 35.57% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.49 per share and a revenue of $4.05 billion, indicating changes of +154.08% and +23.34%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for AppLovin. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.29% higher. At present, AppLovin boasts a Zacks Rank of #3 (Hold).

With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 29.65. This represents a premium compared to its industry's average Forward P/E of 24.12.

One should further note that APP currently holds a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.51 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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