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AppLovin (APP) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, AppLovin (APP - Free Report) was down 1.42% at $641.92. This move lagged the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.34%.
Shares of the mobile app technology company witnessed a gain of 38.75% over the previous month, beating the performance of the Business Services sector with its loss of 0.47%, and the S&P 500's gain of 3.08%.
The upcoming earnings release of AppLovin will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 87.2% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 11.7% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.03 per share and a revenue of $5.5 billion, indicating changes of +99.34% and +16.89%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, AppLovin possesses a Zacks Rank of #1 (Strong Buy).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 72.11. This valuation marks a premium compared to its industry average Forward P/E of 22.01.
It is also worth noting that APP currently has a PEG ratio of 3.61. 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. APP's industry had an average PEG ratio of 1.89 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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AppLovin (APP) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, AppLovin (APP - Free Report) was down 1.42% at $641.92. This move lagged the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.34%.
Shares of the mobile app technology company witnessed a gain of 38.75% over the previous month, beating the performance of the Business Services sector with its loss of 0.47%, and the S&P 500's gain of 3.08%.
The upcoming earnings release of AppLovin will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 87.2% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 11.7% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.03 per share and a revenue of $5.5 billion, indicating changes of +99.34% and +16.89%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, AppLovin possesses a Zacks Rank of #1 (Strong Buy).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 72.11. This valuation marks a premium compared to its industry average Forward P/E of 22.01.
It is also worth noting that APP currently has a PEG ratio of 3.61. 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. APP's industry had an average PEG ratio of 1.89 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.