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Here's Why AppLovin (APP) Fell More Than Broader Market
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AppLovin (APP - Free Report) closed at $435.91 in the latest trading session, marking a -5.02% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq lost 0.84%.
The mobile app technology company's shares have seen an increase of 20.58% over the last month, surpassing the Business Services sector's loss of 0.26% and the S&P 500's loss of 3.7%.
The upcoming earnings release of AppLovin will be of great interest to investors. The company is forecasted to report an EPS of $3.4, showcasing a 103.59% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.77 billion, indicating a 19.29% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.79 per share and revenue of $8.05 billion. These totals would mark changes of +57.27% and +38.69%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AppLovin. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AppLovin is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AppLovin's current valuation metrics, including its Forward P/E ratio of 29.07. This represents a premium compared to its industry average Forward P/E of 16.94.
It's also important to note that APP currently trades at a PEG ratio of 0.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 182, this industry ranks in the bottom 26% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Here's Why AppLovin (APP) Fell More Than Broader Market
AppLovin (APP - Free Report) closed at $435.91 in the latest trading session, marking a -5.02% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq lost 0.84%.
The mobile app technology company's shares have seen an increase of 20.58% over the last month, surpassing the Business Services sector's loss of 0.26% and the S&P 500's loss of 3.7%.
The upcoming earnings release of AppLovin will be of great interest to investors. The company is forecasted to report an EPS of $3.4, showcasing a 103.59% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.77 billion, indicating a 19.29% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.79 per share and revenue of $8.05 billion. These totals would mark changes of +57.27% and +38.69%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AppLovin. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AppLovin is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AppLovin's current valuation metrics, including its Forward P/E ratio of 29.07. This represents a premium compared to its industry average Forward P/E of 16.94.
It's also important to note that APP currently trades at a PEG ratio of 0.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 182, this industry ranks in the bottom 26% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.