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AppLovin (APP) Suffers a Larger Drop Than the General Market: Key Insights
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AppLovin (APP - Free Report) ended the recent trading session at $445.93, demonstrating a -4.09% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the mobile app technology company had lost 18.12% over the past month, lagging the Business Services sector's loss of 1.21% and the S&P 500's loss of 1.4%.
The upcoming earnings release of AppLovin will be of great interest to investors. On that day, AppLovin is projected to report earnings of $3.7 per share, which would represent year-over-year growth of 63.72%. Alongside, our most recent consensus estimate is anticipating revenue of $1.94 billion, indicating a 54.14% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $15.86 per share and a revenue of $8.26 billion, demonstrating changes of +57.97% and +42.34%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AppLovin presently features a Zacks Rank of #3 (Hold).
In terms of valuation, AppLovin is currently trading at a Forward P/E ratio of 29.32. This signifies a premium in comparison to the average Forward P/E of 15.61 for its industry.
We can additionally observe that APP currently boasts a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.4.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 34% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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AppLovin (APP) Suffers a Larger Drop Than the General Market: Key Insights
AppLovin (APP - Free Report) ended the recent trading session at $445.93, demonstrating a -4.09% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the mobile app technology company had lost 18.12% over the past month, lagging the Business Services sector's loss of 1.21% and the S&P 500's loss of 1.4%.
The upcoming earnings release of AppLovin will be of great interest to investors. On that day, AppLovin is projected to report earnings of $3.7 per share, which would represent year-over-year growth of 63.72%. Alongside, our most recent consensus estimate is anticipating revenue of $1.94 billion, indicating a 54.14% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $15.86 per share and a revenue of $8.26 billion, demonstrating changes of +57.97% and +42.34%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AppLovin presently features a Zacks Rank of #3 (Hold).
In terms of valuation, AppLovin is currently trading at a Forward P/E ratio of 29.32. This signifies a premium in comparison to the average Forward P/E of 15.61 for its industry.
We can additionally observe that APP currently boasts a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.4.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 34% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.