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Digital Turbine, Inc. (APPS) Hit a 52 Week High, Can the Run Continue?

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Have you been paying attention to shares of Digital Turbine (APPS - Free Report) ? Shares have been on the move with the stock up 27.3% over the past month. The stock hit a new 52-week high of $14.37 in the previous session. Digital Turbine has gained 185.4% since the start of the year compared to the 16.8% move for the Zacks Computer and Technology sector and the -5.8% return for the Zacks Internet - Software industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 4, 2026, Digital Turbine reported EPS of $0.19 versus consensus estimate of $0.14 while it beat the consensus revenue estimate by 10.8%.

For the current fiscal year, Digital Turbine is expected to post earnings of $0.86 per share on $637.6 in revenues. This represents a 53.57% change in EPS on a 12.8% change in revenues. For the next fiscal year, the company is expected to earn $1.15 per share on $698 in revenues. This represents a year-over-year change of 33.72% and 9.47%, respectively.

Valuation Metrics

Digital Turbine may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Digital Turbine has a Value Score of B. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 16.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.4X. On a trailing cash flow basis, the stock currently trades at 12.8X versus its peer group's average of 21.6X. Additionally, the stock has a PEG ratio of 0.53. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Digital Turbine currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Digital Turbine fits the bill. Thus, it seems as though Digital Turbine shares could still be poised for more gains ahead.

How Does APPS Stack Up to the Competition?

Shares of APPS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is VTEX (VTEX - Free Report) . VTEX has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of C.

Earnings were strong last quarter. VTEX beat our consensus estimate by 50.00%, and for the current fiscal year, VTEX is expected to post earnings of $0.19 per share on revenue of $264.82 million.

Shares of VTEX have gained 8.6% over the past month, and currently trade at a forward P/E of 22.98X and a P/CF of 31.89X.

The Internet - Software industry is in the top 44% of all the industries we have in our universe, so it looks like there are some nice tailwinds for APPS and VTEX, even beyond their own solid fundamental situation.

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