AppLovin (APP) closed the most recent trading day at $363.78, moving +2.33% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.54% for the day. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.74%.
Shares of the mobile app technology company witnessed a gain of 3.23% over the previous month, beating the performance of the Business Services sector with its loss of 1.28%, and underperforming the S&P 500's gain of 4.2%.
The investment community will be closely monitoring the performance of AppLovin in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. The company is forecasted to report an EPS of $2, showcasing a 124.72% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.21 billion, indicating a 12.16% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.44 per share and revenue of $5.46 billion. These totals would mark changes of +86.31% and +15.98%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for AppLovin. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. At present, AppLovin boasts a Zacks Rank of #3 (Hold).
With respect to valuation, AppLovin is currently being traded at a Forward P/E ratio of 42.11. This signifies a premium in comparison to the average Forward P/E of 20.55 for its industry.
Investors should also note that APP has a PEG ratio of 2.11 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Technology Services industry had an average PEG ratio of 1.55 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
