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AppFolio (APPF) Gains As Market Dips: What You Should Know

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The latest trading session saw AppFolio (APPF - Free Report) ending at $211.17, denoting a +0.84% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 0.32%.

The property management software maker's stock has climbed by 1.35% in the past month, falling short of the Computer and Technology sector's gain of 10.75% and the S&P 500's gain of 6.43%.

Investors will be eagerly watching for the performance of AppFolio in its upcoming earnings disclosure. On that day, AppFolio is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $230.3 million, up 16.68% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.21 per share and revenue of $930.84 million, indicating changes of +19.22% and +17.2%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for AppFolio. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, there's been a 1.7% fall in the Zacks Consensus EPS estimate. AppFolio is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, AppFolio is currently exchanging hands at a Forward P/E ratio of 40.23. This valuation marks a premium compared to its industry's average Forward P/E of 28.91.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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