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AppLovin (APP) Dips More Than Broader Market: What You Should Know
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In the latest trading session, AppLovin (APP - Free Report) closed at $315.25, marking a -4.1% move from the previous day. This change lagged the S&P 500's 0.76% loss on the day. Elsewhere, the Dow saw a downswing of 0.68%, while the tech-heavy Nasdaq depreciated by 1.13%.
The mobile app technology company's stock has climbed by 5.86% in the past month, exceeding the Business Services sector's loss of 4.94% and the S&P 500's gain of 1.26%.
The investment community will be closely monitoring the performance of AppLovin in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.95, marking a 61.22% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. Such recent modifications usually signify the changing landscape of 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.49% higher. As of now, AppLovin holds a Zacks Rank of #3 (Hold).
Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 20.86. This valuation marks a premium compared to its industry average Forward P/E of 17.88.
We can additionally observe that APP currently boasts a PEG ratio of 0.68. 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. The Technology Services industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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AppLovin (APP) Dips More Than Broader Market: What You Should Know
In the latest trading session, AppLovin (APP - Free Report) closed at $315.25, marking a -4.1% move from the previous day. This change lagged the S&P 500's 0.76% loss on the day. Elsewhere, the Dow saw a downswing of 0.68%, while the tech-heavy Nasdaq depreciated by 1.13%.
The mobile app technology company's stock has climbed by 5.86% in the past month, exceeding the Business Services sector's loss of 4.94% and the S&P 500's gain of 1.26%.
The investment community will be closely monitoring the performance of AppLovin in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.95, marking a 61.22% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AppLovin. Such recent modifications usually signify the changing landscape of 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.49% higher. As of now, AppLovin holds a Zacks Rank of #3 (Hold).
Looking at valuation, AppLovin is presently trading at a Forward P/E ratio of 20.86. This valuation marks a premium compared to its industry average Forward P/E of 17.88.
We can additionally observe that APP currently boasts a PEG ratio of 0.68. 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. The Technology Services industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.