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AppLovin (APP) Stock Dips While Market Gains: Key Facts
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In the latest close session, AppLovin (APP - Free Report) was down 2.01% at $704.09. This change lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.42%.
Shares of the mobile app technology company have appreciated by 49.16% over the course of the past month, outperforming the Business Services sector's gain of 0.7%, and the S&P 500's gain of 3.54%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 87.2% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.34 billion, indicating a 11.89% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.12 per share and a revenue of $5.53 billion, representing changes of +101.32% and +17.33%, respectively, from the prior year.
Any recent changes to analyst estimates for AppLovin should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.98% upward. Right now, AppLovin possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 78.8. This represents a premium compared to its industry average Forward P/E of 22.19.
Investors should also note that APP has a PEG ratio of 3.94 right now. 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. The Technology Services was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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AppLovin (APP) Stock Dips While Market Gains: Key Facts
In the latest close session, AppLovin (APP - Free Report) was down 2.01% at $704.09. This change lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.42%.
Shares of the mobile app technology company have appreciated by 49.16% over the course of the past month, outperforming the Business Services sector's gain of 0.7%, and the S&P 500's gain of 3.54%.
Analysts and investors alike will be keeping a close eye on the performance of AppLovin in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 87.2% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.34 billion, indicating a 11.89% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.12 per share and a revenue of $5.53 billion, representing changes of +101.32% and +17.33%, respectively, from the prior year.
Any recent changes to analyst estimates for AppLovin should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.98% upward. Right now, AppLovin possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 78.8. This represents a premium compared to its industry average Forward P/E of 22.19.
Investors should also note that APP has a PEG ratio of 3.94 right now. 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. The Technology Services was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.