AppLovin (APP) closed the most recent trading day at $621.52, moving +2.45% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.48% for the day. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 0.94%.
Shares of the mobile app technology company witnessed a gain of 47.11% over the previous month, beating the performance of the Business Services sector with its gain of 2.59%, and the S&P 500's gain of 2.46%.
The upcoming earnings release of AppLovin will be of great interest to investors. In that report, analysts expect AppLovin to post earnings of $2.34 per share. This would mark year-over-year growth of 87.2%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 11.7% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.03 per share and a revenue of $5.5 billion, representing changes of +99.34% and +16.71%, respectively, from the prior year.
Investors might also notice recent changes 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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. At present, AppLovin boasts a Zacks Rank of #1 (Strong Buy).
In the context of valuation, AppLovin is at present trading with a Forward P/E ratio of 67.18. For comparison, its industry has an average Forward P/E of 22.29, which means AppLovin is trading at a premium to the group.
Also, we should mention that APP has a PEG ratio of 3.36. 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 average PEG ratio for the Technology Services industry stood at 1.85 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 34% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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