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AppFolio (APPF) Exceeds Market Returns: Some Facts to Consider

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In the latest close session, AppFolio (APPF - Free Report) was up +1.46% at $282.61. This change outpaced the S&P 500's 0.26% gain on the day. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.

Prior to today's trading, shares of the property management software maker had gained 0.41% lagged the Computer and Technology sector's gain of 7.4% and the S&P 500's gain of 2.87%.

Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.45, showcasing a 11.54% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $246.08 million, indicating a 19.61% growth compared to the corresponding quarter of the prior year.

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 note any recent changes to analyst estimates for AppFolio. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 51.97. Its industry sports an average Forward P/E of 29.71, so one might conclude that AppFolio is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 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.

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


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