We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why AppLovin (APP) Fell More Than Broader Market
Read MoreHide Full Article
In the latest trading session, AppLovin (APP - Free Report) closed at $326.56, marking a -1.48% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow saw a downswing of 1.21%, while the tech-heavy Nasdaq depreciated by 0.01%.
Heading into today, shares of the mobile app technology company had gained 7.88% over the past month, outpacing the Business Services sector's loss of 3.49% and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of AppLovin in its upcoming earnings disclosure. In that report, analysts expect AppLovin to post earnings of $3.95 per share. This would mark year-over-year growth of 61.22%. Our most recent consensus estimate is calling for quarterly revenue of $2.08 billion, up 47.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.76 per share and revenue of $8.12 billion, which would represent changes of +56.97% and +39.83%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 has moved 1.23% higher within the past month. Currently, AppLovin is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 21.03. This valuation marks a premium compared to its industry average Forward P/E of 17.66.
It's also important to note that APP currently trades at a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.26.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why AppLovin (APP) Fell More Than Broader Market
In the latest trading session, AppLovin (APP - Free Report) closed at $326.56, marking a -1.48% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow saw a downswing of 1.21%, while the tech-heavy Nasdaq depreciated by 0.01%.
Heading into today, shares of the mobile app technology company had gained 7.88% over the past month, outpacing the Business Services sector's loss of 3.49% and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of AppLovin in its upcoming earnings disclosure. In that report, analysts expect AppLovin to post earnings of $3.95 per share. This would mark year-over-year growth of 61.22%. Our most recent consensus estimate is calling for quarterly revenue of $2.08 billion, up 47.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.76 per share and revenue of $8.12 billion, which would represent changes of +56.97% and +39.83%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for AppLovin. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 has moved 1.23% higher within the past month. Currently, AppLovin is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 21.03. This valuation marks a premium compared to its industry average Forward P/E of 17.66.
It's also important to note that APP currently trades at a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.26.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.