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Why AppFolio (APPF) Dipped More Than Broader Market Today

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In the latest trading session, AppFolio (APPF - Free Report) closed at $273.54, marking a -1.38% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.69%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq lost 0.82%.

Coming into today, shares of the property management software maker had lost 13.66% in the past month. In that same time, the Computer and Technology sector gained 3.71%, while the S&P 500 gained 3.79%.

The upcoming earnings release of AppFolio will be of great interest to investors. It is anticipated that the company will report an EPS of $1.45, marking a 11.54% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $246.08 million, up 19.61% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.36 per share and a revenue of $943.55 million, signifying shifts of +22.65% and +18.8%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for AppFolio. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, the Zacks Consensus EPS estimate has remained steady. As of now, AppFolio holds a Zacks Rank of #3 (Hold).

Investors should also note AppFolio's current valuation metrics, including its Forward P/E ratio of 51.75. This indicates a premium in contrast to its industry's Forward P/E of 31.39.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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