In the latest trading session, AppLovin (APP) closed at $364.14, marking a +1.17% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%.
Prior to today's trading, shares of the mobile app technology company had gained 3.59% outpaced the Business Services sector's loss of 0.55% and lagged the S&P 500's gain of 4.61%.
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's earnings per share (EPS) are projected to be $1.97, reflecting a 121.35% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, up 12.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.4 per share and a revenue of $5.48 billion, demonstrating changes of +85.43% and +16.31%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AppLovin. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. AppLovin is currently a Zacks Rank #3 (Hold).
Digging into valuation, AppLovin currently has a Forward P/E ratio of 42.88. This signifies a premium in comparison to the average Forward P/E of 21.43 for its industry.
Investors should also note that APP has a PEG ratio of 2.14 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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