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AppLovin (APP) Stock Sinks As Market Gains: Here's Why
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AppLovin (APP - Free Report) closed at $478.20 in the latest trading session, marking a -3% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.75%. Elsewhere, the Dow saw an upswing of 1.86%, while the tech-heavy Nasdaq appreciated by 2.54%.
Heading into today, shares of the mobile app technology company had gained 8.7% over the past month, outpacing the Business Services sector's loss of 1.26% and the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of AppLovin in its upcoming earnings disclosure. The company is expected to report EPS of $3.7, up 63.72% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.94 billion, up 54.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.86 per share and a revenue of $8.26 billion, indicating changes of +57.97% and +42.34%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AppLovin is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 31.09. This denotes a premium relative to the industry average Forward P/E of 16.08.
We can additionally observe that APP currently boasts a PEG ratio of 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Technology Services industry stood at 1.32 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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 Sinks As Market Gains: Here's Why
AppLovin (APP - Free Report) closed at $478.20 in the latest trading session, marking a -3% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.75%. Elsewhere, the Dow saw an upswing of 1.86%, while the tech-heavy Nasdaq appreciated by 2.54%.
Heading into today, shares of the mobile app technology company had gained 8.7% over the past month, outpacing the Business Services sector's loss of 1.26% and the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of AppLovin in its upcoming earnings disclosure. The company is expected to report EPS of $3.7, up 63.72% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.94 billion, up 54.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.86 per share and a revenue of $8.26 billion, indicating changes of +57.97% and +42.34%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AppLovin is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 31.09. This denotes a premium relative to the industry average Forward P/E of 16.08.
We can additionally observe that APP currently boasts a PEG ratio of 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Technology Services industry stood at 1.32 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.