In the latest close session, AppLovin (APP) was up +1.87% at $582.00. The stock outperformed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the mobile app technology company had gained 31.84% outpaced the Business Services sector's gain of 3.12% and the S&P 500's gain of 3.44%.
The upcoming earnings release of AppLovin will be of great interest to investors. The company is expected to report EPS of $2.32, up 85.6% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.34 billion, indicating a 11.7% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.95 per share and a revenue of $5.5 billion, representing changes of +97.57% and +16.71%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AppLovin. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, AppLovin boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, AppLovin is presently being traded at a Forward P/E ratio of 63.87. This indicates a premium in contrast to its industry's Forward P/E of 22.62.
One should further note that APP currently holds a PEG ratio of 3.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. APP's industry had an average PEG ratio of 1.9 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 42% 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.
To follow APP in the coming trading sessions, be sure to utilize Zacks.com.
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AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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