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

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AppFolio (APPF - Free Report) ended the recent trading session at $243.48, demonstrating a -2.55% change from the preceding day's closing price. This change lagged the S&P 500's 0.37% gain on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 0.71%.

The stock of property management software maker has fallen by 12.27% in the past month, lagging the Computer and Technology sector's gain of 8.04% and the S&P 500's gain of 4.26%.

Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. 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. Alongside, our most recent consensus estimate is anticipating revenue of $246.08 million, indicating a 19.61% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.36 per share and revenue of $943.55 million, indicating changes of +22.65% and +18.8%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AppFolio. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AppFolio is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, AppFolio currently has a Forward P/E ratio of 46.62. This denotes a premium relative to the industry average Forward P/E of 30.03.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 26% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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