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AppLovin (APP) Declines More Than Market: Some Information for Investors
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AppLovin (APP - Free Report) ended the recent trading session at $372.08, demonstrating a -2.39% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.73%.
The stock of mobile app technology company has fallen by 12.32% in the past month, lagging the Business Services sector's loss of 8.04% and the S&P 500's loss of 7.34%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. On that day, AppLovin is projected to report earnings of $3.4 per share, which would represent year-over-year growth of 103.59%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.77 billion, indicating a 19.29% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $15.79 per share and a revenue of $8.05 billion, demonstrating changes of +57.27% and +38.69%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for AppLovin. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. AppLovin is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 24.14. For comparison, its industry has an average Forward P/E of 15.98, which means AppLovin is trading at a premium to the group.
One should further note that APP currently holds a PEG ratio of 0.66. 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 industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 24% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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AppLovin (APP) Declines More Than Market: Some Information for Investors
AppLovin (APP - Free Report) ended the recent trading session at $372.08, demonstrating a -2.39% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.73%.
The stock of mobile app technology company has fallen by 12.32% in the past month, lagging the Business Services sector's loss of 8.04% and the S&P 500's loss of 7.34%.
Market participants will be closely following the financial results of AppLovin in its upcoming release. On that day, AppLovin is projected to report earnings of $3.4 per share, which would represent year-over-year growth of 103.59%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.77 billion, indicating a 19.29% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $15.79 per share and a revenue of $8.05 billion, demonstrating changes of +57.27% and +38.69%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for AppLovin. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. AppLovin is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 24.14. For comparison, its industry has an average Forward P/E of 15.98, which means AppLovin is trading at a premium to the group.
One should further note that APP currently holds a PEG ratio of 0.66. 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 industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 24% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.