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AppFolio (APPF) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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AppFolio (APPF - Free Report) closed at $232.57 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's 0.35% loss on the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.14%.

Shares of the property management software maker witnessed a loss of 6.51% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.71%, and the S&P 500's gain of 1.2%.

The upcoming earnings release of AppFolio will be of great interest to investors. The company is predicted to post an EPS of $1.23, indicating a 33.7% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $245.73 million, up 20.66% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.12 per share and a revenue of $947.06 million, signifying shifts of +17.16% and +19.25%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, AppFolio is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, AppFolio is presently being traded at a Forward P/E ratio of 45.98. Its industry sports an average Forward P/E of 29.78, so one might conclude that AppFolio is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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